What is DeFi (Decentralized Finance)?
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?
Decentralized Finance (DeFi) is still all the rage in crypto these days. With more users onboarding from the traditional world of finance, it’s only natural they’d want to hedge some of their risks. That’s where DeFi insurance comes in. As such, this article takes a closer look at some options for decentralized insurance, such as Nexus Mutual.
Development within the blockchain industry keeps accelerating rapidly. The continued growth of decentralized finance has given birth to several innovative crypto insurance solutions aimed at protecting against smart contract failure and other technical issues that needlessly result in huge losses in DeFi. Furthermore, blockchain is being used to solve real-world problems by providing decentralized insurance to those that need it the most.