Crypto terms: Decentralised finance (DeFi)
The cryptocurrency and DeFi community are very optimistic about the future of decentralised finance. There are many players in DeFi providing services that enable people to borrow, lend, trade and speculate on the crypto-market. Etherscan recently created the DeFi monitor which is a great way for people to find out about Decentralised Finance products that exist in Ethereum.
Full Stack Crypto has created a video series In Defence Of Decentralised Finance (DeFi). The series aims to explain the various DeFi systems that exist, why DeFi is an important part of cryptocurrency and why we need it.
Full Stack Crypto is also a big proponent of DeFi, they believe that it will help further decentralise the world and bring people into blockchain technology.
DeFi is a relatively new phenomenon and it has only been around for a couple of years. In this post, I will be addressing a few of the main components of DeFi, explain how they work, how to get involved, and how the whole ecosystem of products fits together.
The products that are part of DeFi are not going to replace conventional finance products. Rather, they will supplement them by offering financial services that aren't readily available through traditional banking methods.
Decentralised finance (DeFi) at its simplest is just finance that lives on the blockchain. This spans an incredibly wide array of products and services: DEX's (decentralized exchanges), lending and borrowing, derivatives, options and prediction markets, stable coins and more.
Decentralised finance is essentially a gateway to expanding the capabilities of blockchain based protocols to vastly increase the utility of these protocols. These products have the potential to greatly change the way we manage money and the way we think about value storage. This is why we are so passionate about decentralised finance, we see it as one of the next major frontiers for blockchain technology.
To help educate our users about issues surrounding decentralised finance, we are launching a series of articles on Bitcoin.com. Each article will investigate a DeFi product or project and explain its overall purpose, how it works and some example use cases. The first two articles in this series were exclusively written by community members who are heavily involved in the development of DeFi products.
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