DeFi is the new way to do finance, all transactions are recorded on the blockchain and use cryptocurrency instead of fiat. DeFI is lower transaction fees and instant transfers, transparent and trustworthy. It is the future of banking and financial services.
I want to see how we can leverage DeFi to come up with new disruptive opportunities that we can build around to create some challenger offerings.
1.) Bitcoin core can by now be seen as internet money, without a middleman in the form of VISA, Paypal, a bank, or at least a central bank. I assume DeFi means financial āproductsā for investing (especially with an alternative to dividends in mind) without a middleman, like a bank or a stock exchange, or even a CEX. But I realize, that the actual definition will be much wider and more interesting.
2.) I hope to gather knowledge about safely investing money without a middleman.
DeFi: Set of technologies intended to use blockchain to replicate and expand on the uses of traditional finance.
Goals: To improve my understanding of the ecosystem I work in (Iām a solidity developer) and to be able to contribute to the conversation when I work with more experienced developers.
For me I think itās a decentralized financial process where the individuals are allowed to make transactions without the need of intermediaries making decisions for you and that it also allows transparency.
Hopefully work with start-up company in the web3 where I understand the tokenomics of the goals for the company and that it also aligns with my goal.
Learn web3 and build my understanding to the point where I could make strategic plans for the future to become financially free.
I have been investing in DeFi such as chainllink, the graph and Aave and I really believe its the future and financial freedom
increase my knowledge and understanding
Share your thoughts on what DeFi is in this topic.
DeFi (Decentralized Finance) exists on the Blockchain, mainly on the Ethereum blockchain. It offers the same services as a bank, you can borrow, lend, earn interest or trade etc. With defi, you hold your money not an institution, you have the control over your money. Transactions are pseudonymous, not attached to your name. Itās transparent and anyone can use it.
Write down your goals of what you want to get out of this course.
To gain more understanding of the infrastructure and the whole crypto world so I can spread the word and explain it better to my friends, family who would be interested in investing as well.
A1. A decentralized way to perform financial activities
A2. Understand the basic fundamentals around DeFi. Gain knowledge to better understand the current DeFI projects
What is DEFI?
DeFi stands for decentralized finance. It is in contrast to the CeFI or Centralized Finance, where you have the mostly banks as your middle man for financial transactions. There are Centralized Exchanges (CEX) and then there are decentralized exchanges (DEX). Example of CEX is Coinbase, Binance etc. Example of DEX ae UniSwap, AAVE etc.
In the DeFi world, lending and borrowing is handled by AMM (Automated Market Maker). This eliminates the middle man in traditional banking, and the reliance on individuals or corporations for your day to day finance needs.
My Goals:
Decentralised peer to peer transfer for token value between willing participants in a blockchain network, used for payments, lending, investing, hedging and structuring assets in the blockchain ecosystem. A lot of CeFi projects in this space mascaraed as DeFi but in fact are not.
Basic understanding for the elements of DeFi and how to participate while mitigating risk.
Financial systems, applications, and products that are built on top of decentralized, open-source blockchain networks such as Ethereum. DEFI applications aim to provide financial services that are transparent, secure, and accessible to anyone with an internet connection, without the need for intermediaries such as banks or other financial institutions.
DEFI applications often use smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. DEFI applications can provide a range of financial services, including lending, borrowing, trading, payments, and asset management.
1. Share your thoughts on what DeFi is in this topic
DeFi or decentralised finance is an infrastructure of financial systems built on Blockchains that focus on making financial services decentralised. Anyone can use these services anywhere at any time. There are no huge restrictions to using DeFi and no one can lock your funds away. DeFi also makes finance transparent and all records of transactions public.
2. Write down your goals of what you want to get out of this course
1. Thoughts on DeFi:
Defi = decentralized finance.
Similar in concept to Napster and torrents, where one downloads a file, not from a single server (where files are stored) but, from any user who is on the internet with that same file. Essentially, downloading a file from thousands of different computers.
However, rather than downloading and hosting files, each user interacts and stores all the information from all financial transactions and, who owns how much, of a particular currency, on each individual computer - called ānodesā.
When a user, interacts with the network of a particular currency, all nodes simultaneously reflect any new transaction and, all nodes remain up to date.
In Centralized finance (our current banking and monetary system), all info is stored in one place and needs the intermediary - the bank or whomever controls and stores that info, to give you access to your money and approve your transactions. This is problematic as this is subject to human error, fraud or the bankruptcy/insolvency of the institution who āholdsā your money.
In DeFi, you have direct access to your funds and can transact directly with another party rather than having to go through an intermediary/3rd party. And, because all confirmed transactions are simultaneously reflected and stored on all individual nodes, human error and fraud cannot come into play. And, insolvency is not an issue because no 3rd party is āholdingā your money.
Of course, you can agree to participate or ātrustā your funds with someone elseās protocol - whether exchange, staking pools, money lending or borrowing etc., and that could open you up to the potential of fraud and error, especially if these protocols are centralized.
However the difference between the traditional system of money and Defi, isā¦that you HAVE to trust someone else with your money in the traditional system.
2. Goals
The above thoughts are just the basic concept of DeFi so, I want to learn of what is happening right now in Defi, and the potential of what is possible, so that I can better apply what I am learning in āprogramming and developingā.