DeFi: Making Money From Decentralized Finance

over 1 year ago8:45 mins

DeFi: Making Money From Decentralized Finance

Introduction

One of the financial industry’s fastest-growing trends is decentralized finance, or DeFi for short. DeFi is a new way of transacting that doesn’t rely on intermediaries such as brokerages, exchanges, or banks for financial products and services.

Take a simple transfer of money. If you want to send $100 to a friend, you first send the instruction to your bank, which then deducts $100 from your account and increases your friend’s balance by $100. The bank is in total control: only it can maintain and alter the database of everyone’s account balances and historical transactions.

DeFi, by contrast, aims to revolutionize finance by doing away with such central intermediaries. Key to this is the technology known as blockchain: basically a digital database of transactions – or l

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