#DeFi #TradFi #crypto #economy #knightsbridge #DAO
“DeFi is 1 of the most important topics in cryptocurrency. The aim of DeFi is to create an entirely new financial system, completely independent of the TradFi economy. There are billions of dollars being invested into this goal, along with the efforts of thousands of developers around the world”— Paul Ebeling
Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The system removes the control banks and institutions have on money, financial products, and financial services.
Some of the Key attractions of DeFi for many consumers are:
- It eliminates the fees that banks and other financial companies charge for using their services.
- You hold your money in a secure digital wallet instead of keeping it in a bank.
- Anyone with an internet connection can use it without needing approval.
- You can transfer funds in seconds and minutes.
Decentralized finance is still in the beginning stages of its evolution. For starters, it is unregulated, which means the ecosystem is still riddled with infrastructural mishaps, hacks, and scams.
Current laws were crafted based on the idea of separate financial jurisdictions, each with its own set of laws and rules. DeFi’s borderless transaction ability presents essential questions for this type of regulation.
Have a prosperous weekend, Keep the Faith!
