In light of the forging, I want to say a big welcome to the newest community in hive #deFi and it's collaboration with #project.hope and #hodlcommunity.
In my post I'm going to give a overview on what is DeFi and how is it different from traditional finance?
Before getting right to it I'll like to define some terms; DeFi and Traditional finance
DeFi;
It's an acronym for Decentralized Finance, an ecosystem focused on providing reliable financial services based on vast network with no ruling power.Traditional finance;
University Herald Traditional finance simply states that investors don't make financial decisions on emotions.
There is the assumption that the investor and the market are rational and their decisions are based in the information gathered.
Presently, DeFi is at its beginning phase. It included different level of decentralization for every decentralized applications shortened as DAPPS.
The broad spectrum of DeFi campus includes the following objectives;
To discover talents of those producing contents relating to DeFi without the hive community and appreciate their efforts.
To teach hivers all about DeFi, learn from one another and grow our crypto currencies.
Some of DeFi projects are listed below;
- Alternative Savings
- Analytics
- Asset Management Tools
- DAOs
- Decentralized Exchanges
- Derivatives
- Infrastructure & Dev Tooling
- Insurance
- KYC & Identity
- Lending & Borrowing
- Margin Trading
- Marketplaces
- Payments
- Prediction Markets
- Stablecoins
- Staking
- Tokenization of Assets
How is DeFi different from traditional finance?
Decentralized finance and traditional finance share a lot of similarities but the major difference can be seen in the fact that traditional finance uses intermediaries to complete a single transaction while DeFi transactions occurs between individuals without the involvement of intermediaries.
Decentralized finance just involves the use of good contracts to hold collateral from receivers and deliver interest to the lenders.
Whereas in the traditional financial world, commercial banks usually give interest to people and enterprises who open bank deposits with them in terms of allowing the bank to make other operations using their deposit.
There are dos and donts that one must take into cognizant. It's an online platform and it's subject to scams inform of lookalike websites, click baits among others
Do
- Make a good research;
When sourcing it's evident that one should evaluate the source of information. Try to watch out if the information is coming from a reliable source or a paid advert.
Dont
- Don't invest in a lot at once;
Ever heard of the saying, "don't put all your eggs in one basket". Well the same first for DeFi. Give it a try with a little and personally evaluate if one is satisfied with their financial services.
Currently I have no experience with DeFi campus. I just heard about it a while back and I decided to make a post on my understanding of all I learnt.
This interpretation is solely for me. I'm not in any way using it to influence the opinion of others.
It is a vast topic and a lot to learn from this niche in the crypto space.
I'll have to agree with you. What I just posted is a basics of the little I understood.
Thank you for stopping by. Hope you have a great day.
My pleasure.
Congratulations @beckie96830! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
You can view your badges on your board And compare to others on the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPSupport the HiveBuzz project. Vote for our proposal!
In the future defi will be choice for large investor
I pray so. If they understand how it works they'd be able to give it a try
Hi @beckie96830, thanks for the entry!
I think the key takeaway here that I read about is to always understand what you are investing in and manage your risk well. This tip applies to every investment regardless DeFi or not 🙂
Very good explanation my friend, I think you made a lot of points! Definitely the decentralized is better than the traditional, I think!
Well I'm glad you think other wise. Try it out sometime. But be careful if it's your first time
Imagine a world where everyone employs programmable money to some extent. This would dramatically curtail society's 'hung over' syndrome. Nice take on the first week's contest.
Thank you. It's so nice to try out new things. Having a world that appreciates programmable money means you have to sit down and teach extensively the illiterates and adults.
Dear @beckie96830
Solid summary what DeFi is about. It seem that there is much hype around DeFi those days. Just like there was so much hype and hopes around STO in 2019. Wouldn't you agree?
One can only hope, that this time around there will be more to that than just a short term hype.
Enjoy your weekend,
Yours, Piotr
I will. And you too. I hope it has come to stay unlike the others.
I just gave a summary based on my understanding.
I'm not actually influencing the decisions of others but in any case I only wish them the best.
Thanks for stopping by @crypto.piotr
Have a great weekend too and my regards to your family.
Hi. You present a well-written summary. Where did you obtain your information on the DeFi Projects?
There were some articles provided for us to read and summarize
When you quote or summarize from them, you have to provide the source. You would not have known that information were it not for those articles. This information is not common knowledge about the projects they currently are working on.
This is a nice summation and explanation.
Tip sent!
Thank you very much Sir
❤️❤️❤️
Becky.