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| Decentralized finance is revolutionizing the global financial sector |
The term decentralized finance appeared in 2013, at the same time as the birth of the Ethereum currency. However, with the support of the Ethereum currency on the one hand and the support of experts and entrepreneurs on the other hand, it started spreading and expanding between 2016 and 2017.
Decentralized finance, also known as DeFi, includes a large number of financial applications in the field of cryptocurrency and blockchain. Its main goal is to break the boundaries between the parties in financial transactions.
Most DeFi applications are based on the Ethereum currency. The largest is MakerDAO, founded by Ron Christensen.
DeFi has evolved in recent years
The concept of decentralized finance is spreading rapidly. As you would expect from an integrated blockchain-based system. This type of technology is a solution to many problems in the banking and finance sectors.
Some people believe that this system can replace traditional systems in the future. Regardless of the technology or platform used, DeFi aims to eliminate the middleman between two parties in financial transactions.
In recent years, decentralized financial systems have proven to be viable and able to evolve. The total amount deposited in his contract is $60.5 billion, according to DeBank.
Decentralized finance provides an easy way to manage financial transactions. As the name implies, it is not under the control of the government and changes in the central financial system do not apply to it.
People's understanding of cryptocurrency mining also knows something about DeFi. Because this method does not have to depend on a third party. It also allows users to maintain the confidentiality of their identities when conducting financial transactions, as all transactions are processed through the blockchain.
What is the future of DeFi
There are no clear guidelines for regulating this new method of financing. However, few countries in the world have started cracking down on it as it eliminates middlemen and hides transaction data.
On the other hand, the growth and development has not stopped since the advent of decentralized finance. This region is also expected to play a very important role in the future of the global economy.
This method is expected to face a lot of criticism. It can even lead to criminal prosecution. The way it works is based on cryptocurrency and decentralization, a technology that most countries of the world do not like.