The creator economy stimulates innovation as it always needs sustainability.
To create a new and incremental source of income for the creators, we created Frak: a DeFi Protocol dedicated to the Creator Economy.
What is DeFi?
“DeFi” is for “Decentralized Finance”. It is a decentralized financial system based on blockchain and cryptocurrency.
Thanks to Web3 technologies, DeFi opens the perspectives of the current financial system and offers an alternative to it, like a digital version of wall street in crypto without most of the regulations of the traditional system, and creates a more open and equitable finance market.
The current traditional system relies on old program language. DeFi creates a more advanced system thanks to new technologies such as smart contracts.
What are smart contracts?
The smart contracts are coded at the creation of the DeFi. They link the system to a cryptocurrency and set the rules of the system so no one can change them.
If you heard about“Fintech” (Finance Technology), it is different from DeFi because it creates software, tools, that can be owned and controlled by companies. On the contrary, DeFi is completely decentralized and independent.
What makes DeFi unique and innovative?
- Open, permissionless, and fair:
No matter where you’re from, what country, what social class, what salary… DeFi is genuinely inclusive and open to everybody. Anyone with an internet connexion can access this service without any permission or authorization. No document verification, no need to provide income statements, no need for paperwork to “open an account”.
Around 1.7bn people don’t own a bank account today. Sometimes people are not eligible, or the system is too expensive or the system is not reliable enough. But in DeFi you don’t have to apply as in the traditional financial system and face inequalities. DeFi has a real egalitarian power all over the world.
Everyone is treated the same way and nobody can deny access.
- As transparent and incorruptible as possible
No one can change the rules, unlike the traditional system where governments can control the companies. The rules are already written into the technology (smart contracts) and can’t be changed.
When people decide to make a transaction, nobody can forbid or change it. As the transactions are scripted into the blockchain, it’s almost incorruptible. It’s decentralized which means you control your money and where it goes: your money is not managed by companies anymore. DeFi is trustless, which doesn’t mean you can’t trust it ;) It means you don’t HAVE to put all your trust in a middleman to centralize and manage your money. In DeFi, people trade directly with one another. It’s a system that belongs to its community.
The conditions are fully transparent and anybody can check them, unlike the traditional system which is very opaque and closed.
Also, you don’t have to give your identity. So it’s fully transparent, you can see every transaction and verify everything on the blockchain, but everything is anonymous.
- Fluent and fast
You can transfer, sell, buy or exchange very easily with anyone. You can also instantly create a wallet.
As it’s “P2P” (peer-to-peer), you don’t need any middleman to accept the transaction. As every rule is already coded in the smart contracts, no or minimum human involvement is needed (which reduce considerably the transaction fees because there is no infrastructure or manager to pay).
Transactions are more efficient and almost instantaneous. In traditional finance, money transfers can take days because of human processes.
DeFi is the democratization of investment. It’s cheaper, more efficient and reliable. It allows the creation of new financial products and uses.
Trading activity on decentralized exchanges is growing very fast!
We can imagine that DeFi could make traditional finance systems obsolete thanks to the creation of an ecosystem where any value can freely circulate.
If you want to continue the conversation, you can connect with us @frak_defi on Twitter or on Telegram.
Be informed when a new article is published by following us on Medium. If you liked this article, please clap for it (up to 50x) to let us know you enjoyed it. It’ll mean a lot to us.
Thank you :)
