What is DeFi | Evolution or Revolution in the Finance System?
Finance is one of the oldest and essential aspects of civilization. Under the Influence of time, they have been changed & improved a lot. The long way from primitive brass coins to digitalization…
At that point, we are at a crossroads! Is Traditional or Decentralized finance our future? People choose different directions. So here I am, Robi, to tell you more!
Both systems are developed enough to provide people with exchange, investing and other basic financial services. So the difference lies in the methods they operate.
Traditional Finance | Forward to the Past!
I guess you are closely familiar with this system and have used it many times. A common example of traditional finance is visiting a bank to get a loan or withdraw your cash via cheque. So, your interactions with finance are strongly tied with 3rd parties, like banks and authorities. It looks very usual, and in the biggest part of the world, the Traditional Finance system doesn’t associate with something conservative and old-fashioned. And it is ok because this system has gone through years of modernization but still maintains 3rd party control over the assets. That is why we can describe this system as centralized.
But as I already mentioned, we have a totally different direction that has become more and more popular because of the innovative approach. Keep reading to explore the main principles & advantages of the alternative finance future that has already come!
Decentralized System | Feel the Finance Freedom!
Decentralized System or DeFi is a term that characterizes finance and market relations without 3rd parties and centralized institutions.
DeFi is based on smart contracts to provide services that don’t need intermediaries. The smart contract is a type of account that allows holding funds and sending or refunding them according to specific and accurate conditions that no one can change. It means that your assets run through the program that is predictable and visible.
Sounds good, isn’t it? But how to enter the DeFi space? The Decentralized System is open to everyone who has an internet connection. You are reading this Article by an internet resource, so you are kindly welcome!
Back to the Roots!
The start of DeFi and the whole crypto industry coincides with Bitcoin’s birth in 2009. Being the first Decentralized Finance instrument, Bitcoin straightens its position and value, proving that DeFi is applicable and very convenient for life and has a huge potential.
Blockchains as a base of DeFi have grown rapidly and their services as well. Loans, credits, investing, storage, trading and other usual operations without authority’s control become accessible for users! So for today, we have a Global system with various opportunities you can experience and profit from.
DeFi Key Characteristics & Advantages
Let me provide you with key aspects that attract new users every day:
- First of all, DeFi provides an open and transparent finance sector. All operations are recorded on the blockchain and visible to users.
- Despite the publicity of DeFi, this system allows you to save your private information from unwanted glances.
- No one can impact or control your assets except you.
- DeFi has a technical background which means less human interaction and bureaucracy as well.
- The less bureaucracy is on the way, the faster operations are! That is why transactions in DeFi can save your precious time.
- Variety of earning options. In the very beginning, DeFi users were limited to a few services. But now, DeFi space has no limits! Besides the standard finance operations, you can make crypto profit from art, games, music and even more.
- DeFi has no geographical borders, and you can use its services wherever you are.
What Are the Differences Between DeFi & Traditional Finance?
The reason for the growing DeFi popularity is a range of advantages against the Traditional Finance system. Let’s compare together:
There are many more benefits you can experience diving into the DeFi space! However, like all new spheres, it requires some time for research and practice. But I am sure that you will succeed! Just try🤗
Biswap is a DeFi App | Enjoy Decentralized Finance Systems with Us!
Biswap DEX is a DeFi DApp based on BNB Chain. You can experience the freedom of finance using our platform! Just take a look at the benefits:
💸The lowest exchange of 0.2% fee
💸Up to 50% Fee Return for swaps
💸75% LP Reward for Investors
We offer exclusive earning options to our users! Today is a perfect day to launch your income rocket to the moon with:
DeFi space is completely open for you! It’s time to take the first step toward an exciting journey full of financial opportunities. Remember that the Biswap community is always happy to welcome and guide you through the world of profit and innovations!
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