I was so intrigued by DeFi after hearing about it that I began researching it on the internet and discovered some interesting stuff.
It employs blockchains and cryptocurrencies to provide bank-like services like saving, lending, borrowing, and trading without the need for middlemen. Brokerages, exchanges, banks, and other traditional financial institutions are being replaced by smart contracts.
The Ethereum blockchain is used by the majority of DeFi applications. The conditions of the agreement are enforced via a smart contract performed on the blockchain. The risk of utilizing a DeFi app is heavily reliant on technology.
A user with a crypto wallet may, among other things, trade digital assets, obtain loans, and purchase insurance.
Projects like Xodex have demonstrated the scale of DeFi’s effect (particularly in terms of solutions for rapid transactions and zero gas expenses), and it will surely transform business finance services.
What are your thoughts on how this could affect business finance services?
Even the transaction banking industry is recognizing DeFi’s potential to enhance the lack of flexibility in present methods.
And perhaps my favorite aspect is that there is no bank manager issuing you an account. And there is no oversight or external insurance!
What do you like the most about DeFi?