What Is DeFi?

Decentralized Finance is a revolutionary banking system or financial application built on blockchain. DeFi can provide easy access to users compared to traditional banking systems.

Fast, easy, low transaction fees, and anonymous.

DeFi provides many advantages for its users in conducting transactions.

3-Minute-Understanding

DeFi exists because of cryptocurrencies, and cryptocurrencies exist because people don't trust traditional banks, who are not transparent in their transactions and often practice printing money.

Therefore blockchain and DeFi were created to simplify the banking system and increase transaction transparency.

Traditional Banks use money to earn income through loans and other financial activities, and return interest to users. In DeFi, financial institutions and their behavior are replaced by smart contracts on the blockchain.

There are several advantages of DeFi such as:

1. More benefits will be returned to users as the financial institution's operating costs are reduced.

2. The contracts are transparent and all transactions and operations can be checked to reduce the risk of centralization.