What is Defi — The New Financial System
Introduction to Decentralised Finance
Defi is a short form of “Decentralised Finance”. It is basically a term that means anyone can buy and use financial services and products without any permission from a set of authorities. Hence, we can conclude that there is no centralized authorities who can ban a person from a particular transaction.
Therefore, anyone with an internet connection who can use Ethereum can manage his transactions on his own. It doesn’t require any personal information to do any kind of transaction.
You just need a wallet id to do any sort of transactions without any personal information or government-recognized identity card. Decentralized Finance works on blockchain mainly Ethereum and hence, it gets impossible to hack the system. Therefore it is the most secure form of payment where each and everyone can participate.
Main Advantage of Defi —
- Only you hold your money
- Only you can control your money and see where it goes. No one has any authority over your transactions
- Open to everyone, no one can block or deny a person
- Completely transparent and crystal clear which makes it the most secure form of financial model
