One major advantage all crypto users enjoy is having Decentralized Finance in place to execute their transactions in safer way. That is also to say that it’s one of the innovative projects build by crypto Developers or Designers. I thinking it’s also the main reason why it has attracted most investors to trade with their assets which has helped to build crypto. Because the usage of crypto would have been minimal without Decentralized Finance.
Decentralized Finance in short DEFI is the new model of crypto designed to help crypto users to buy, sell, loan or execute payments using cryptocurrencies without any centralized operations. The transactions are normally done through peer-to-peer system. This is similar to our centralized system of trading in our traditional Banks where we have third party agreement before transactions are done. The peer-to-peer system is computerized node run for the network to execute the transaction on the computer device instead of human to do all these tasks. It is rather safer in the sense that it’s already programmed without anybody to temper or interfere its operation. Currently, due to money laundries it’s difficulty for someone to be trusted. That’s why crypto decentralized finance has come to solve all the lapses of such situation of illegal means and untrusted individuals doing money transfers on behalf of someone.
Establishment of Stable coins
As we know transferring crypto from one network to another is common and a means through which crypto and blockchain exist. It is a means of trading since crypto is a digital currency which can be transferred for exchange for real fiat. We want to devoid the risks of our money passing through the hands of physical people why computer can do this simple if programmed, such that it becomes immutable by any people. Once the crypto is or shared it would be very difficult to alter the figures. Recently, there are injustice and corruption in our central system of transaction.
Decentral platform like Ethereum and other stable coins like Tether and DAI have helped trading and investing to become very easy and trusted. Recently when we look at exchange platform like Binance there are many people who have joined the peer-to-peer trading either buying one crypto coin for another. In this case the stable coins have become the base digital currency for transactions. This is similar to the centralized system where the Dollar has become the popular in the international market that has accepted for trading.
The stable coins are stable and not volatile like Bitcoin which is sometimes unstable for trading. Stable coins are normally pegged with the Dollar value. So it changes are some times minimal compared with Bitcoin which has large volumes.
Now Decentralized Exchange (DEX) which is another form of small contract offered for crypto users for trading. This is similar to our Bank Institutions where are money is traded. In this case there is no identity face, identity verification or sign up. It really eliminates the risks of hacking or blocking of assets. Only few rules are performed to execute transactions. This is similar to the Ethereum platform.
Some of the great DEFI incentivizations are as follows:
1• Defi allows permissionless; that's you don't need to ask permission before making transactions using Defi. It's trustworthy and censorship resistant for users. As we have covered in the later discussions, Defi Crypto is immutable and it's not possible for hackers or phishers to breakthrough and temper the system. One think allow Investors with huge sum of money to trade Crypto DEX is the fact that it secured. There nothin like panicking.
There aren't much restrictions for people to use crypto for transactions. There are no hard rules and monetization for users of crypto.
2• Defi Transactions are relatively cheaper and faster than our local Bank. It takes few minutes for transferring crypto or stable coins from one network to another in few seconds. There are small fees that are charged for buying or selling your crypto.
3• Defi ensures keeping one confidentiality or privacy. Lately many crypto users have smart phones. They need not to go to cafe to make transactions.
In summary, Defi is offering a lot more easy ways to make transactions of crypto platform. Through this much crypto coins are created with thousands of user trading in diverse ways. One of the goods this is that, much have been learnt in using Bitcoin for trading expose many traders to risks factor especially the Novice in the DEX platform. However, there is the second option to trade with stable coins like DAI and Tether which are mostly pegged to the value of the Dollar.
Posted Using LeoFinance Alpha
Hi there! DeFi is a great creation for a lot of people. Not all countries support it, but even if they doesn't, it is still helping since it does not require third parties involved.
You got a vote of our curation team! That's great.
This vote could be higher if you provide sources to the information and facts mentioned, add images, and share your post on Threads and Twitter (X). Here is an article with tips to creating awesome content!
What makes a post curatable on Leo?, and you might like to see Twitter Curation and Threads
Have you seen our new proposal? If not, please consider checking it out: Proposal to Grow the Hive Ecosystem With the Everything App and One-Click Onboarding We value your support.
That's really true! Thanks for your guidelines @leo.tasks. I'll make sure to provide details and sources to information shared next time.
Per @leothreades and #Twitter share link, lately I am finding challenges sharing using the New UI, especially using my mobile phone. It gives me error feedbacks. I am a big fun of #leothreads campaign as you can see my previous posts and #threading hubs. But unless I use my laptop which isn't always close to me. I am trying to figure out why I am unable to use my smart phone lately to access @leofinance New UI.
Please I need help!