For several years I have been hearing about the concept of DeFi or decentralized finance, it is the new decentralized financial system worldwide, fair and sustainable where users have total control of their financial assets. The current financial system works based on the monopoly of a few over the majority, causing that the assets that we have do not really have any guarantee, since they can be easily confiscated or retained, it is something like having something but not being the owner; The DeFi guarantee that our assets are ours and the best thing is that we will have control over them.
DeFi is the most advanced financial protocol, hosted on the Ethereum blockchain, this system is designed to emulate the traditional system in cases such as loans, electronic commerce, cryptocurrency exchange between a wide variety of businesses through smart contracts that create a complete DECENTRALIZED ecosystem, providing security and confidence to users by having their own assets in custody, completely eliminating intermediaries and allowing fast, transparent and fair negotiation for the two parties involved.
If we are smart and analyze the traditional economic system, we will see that it is completely CENTRALIZED, where the power and custody of our assets is focused on only a few institutions, which end up taking the largest percentage of any negotiation, leaving to users at the mercy of their own rules, since it is these same institutions who determine who can or cannot access their services, making the financial system a luxury that only those who decide will be able to have.
We must remember, recall situations such as in Argentina when the first recession happened and people could not get their money from the banks, or how in the last week the Bank of England has withheld 31 tons of gold that belong to Venezuela or how the The government of Turkey froze more than 5 thousand bank accounts of users, or how is the case in my country where a person wanted to buy gold from a bank, could buy it but could not get it out of the bank, a totally absurd situation, where we are owners of nothing; These data should warn us about a very fragile economic system, where users can lose everything from one day to the next.
The traditional economic system is damaged, corruption has destroyed any hope of recovering it and it is we, the users, who end up paying for the decisions and mistakes that a few are making, the DeFi system comes to democratize finances, no matter from which country Whether you are rich or not, we all have the same opportunities to be part of this new economy, with little or much we can all enter and participate in financial services, DeFi gives us the opportunity to get closer to each other without looking at social classes , nationality, facial or ethnic features, the gap between rich and poor is closing.
So what do we need to start participating in DeFi?
At first everything seems very complicated, but remember that phrase that says: "Practice makes perfect" and obviously we need education not to make many mistakes, after having a little practice everything becomes easier, we must start by having a wallet compatible with Ethereum and that gives us the possibility to connect to any DeFi protocol through a browser, in this case MetaMask is recommended, after this, we buy the currency corresponding to the DeFi protocol that we want to use, then we must enter the DeFi game on which has a wide way of participating, among the best known we can lend our cryptos and earn commissions, the good news for @Read.Cash users is that Bitcoin Cash now has the SmartBCH complementary system where we could participate in smart contracts entering the world of DeFi.
Disclaimer: The content of this publication does not constitute financial advice at any time, the financial markets have a high risk, for that reason it is the responsibility of each one to enter them or not, always risking the money that is willing to lose.
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Disclaimer: English is not my source language, I strive to create valuable English and Spanish-speaking content, have complete confidence to correct me with respect, that will help my learning.
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