WTF is DeFi?
Lots of hype, very few users. DeFi is blockchain’s latest obsession.
If you have been living under a rock, you would not have heard of DeFi. Open and Decentralized Finance (DeFi) is the new hoot in the blockchain world.
The goal of DeFi is to rebuild the entire financial system from the ground up in an open and permissionless way.
The idea is to separate money from politics.
Since the beginning, central authorities like governments and national banks have been at the heart of all financial decision-making. Ordinary people usually have very little say in how these institutions handle their money.
DeFi empowers everyone to take back control of their finances.
Let’s not forget that central banks are also people! People make mistakes. Remember the 2008 financial crisis? 10,000,000% inflation in Venezuela? These are terrible mistakes made by people!
The power in the financial world is highly centralized. More than half of global VC funding goes to U.S. startups, most of which are in a few cities like San Francisco and New York City. Meanwhile, even in the U.S., the bottom 80 percent of society own only 7 percent of company shares, and individuals in many other nations do not even have access to stock markets. Finance is central…
