Ivan on Tech Academy provides latest insights and reports about the blockchain industry.
Decentralized Finance, more popularly known as DeFi, is an umbrella term for the next-generation financial applications ecosystem currently emerging. What sets the DeFi field apart from traditional finance applications is that it employs public blockchain technology. This is the same technology underpinning cryptocurrencies, and has become hotter than ever in past years.
DeFi, which is sometimes known as “open finance”, encompasses a broad variety of various subjects. To name a few, these include decentralized exchanges, decentralized stablecoins, decentralized money markets, decentralized synthetics and decentralized insurance.
This can all be a lot to take in. No matter what, it is clear that the most important takeaway is that the various applications in the DeFi field are decentralized. You might have heard about decentralization in relation to blockchain technology or cryptocurrencies - but what does it mean?
Blockchain-driven innovation is heating up. However, Bitcoin is still the elephant in the room when it comes to discussing crypto with the average person. In terms of sheer brand recognition, it always wins hands down. However, there are more interesting things going on right now in the crypto space, and one of them is Decentralized Finance or DeFi.
Not to dismiss Bitcoin or minimize its role in bringing about the blockchain revolution, but let's just say that while Bitcoin's price has been lurching sideways like a dawdling old grandpa (falling off its walker each time it bumps into the $10k resistance barrier), DeFi has been sprinting around the track like Usain Bolt. In fact, some observers are already predicting that DeFi might well be the next big thing in the blockchain field.
Things can change quickly in crypto, but presently, DeFi is performing well as a family of assets and frankly, it's a more exciting space to be in. So, if you're new to crypto or you've only been...