With over $13 billion locked across them, Decentralized Finance or DeFi protocols are eyeing astronomical growth in the years to come. In offering a global, open substitute for every financial service the world uses – savings, loans, trading, insurance, and more – DeFi is poised to take blockchain’s promise of universal accessibility a step further.
What makes DeFi an immense success story is the disruption it offers to the present centralized financial domains worldwide, which lay all regulatory powers of demand, supplies, and currencies along with the possibility of bad monetary policymaking and economic downfall in the hands of banks and governments.
The DeFi or Open Finance Movement
Decentralized Finance or DeFi is a novel monetary system on the bloc which is built on public blockchains. Encompassing components such as protocols, digital assets, dApps, and Smart Contracts – all assembled on blockchain – DeFi offers a programmable and transparent financial network for anyone to use across geographical and political boundaries.
The vast and open-source network can be used by developers to create apps that enable an array of financial activities without the involvement of centralized institutions. DeFi holds immense potential to empower the global human population in terms of accessing basic financial services and open banking facilities without obstacles in the name of governance protocols.
What Can You Build Using DeFi?
DeFi utilizes algorithms either through code or smart contracts, which when deployed to blockchain enable DeFi apps to run without any human intervention at any level in the hierarchy. Therefore, anyone can create …
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