“Gradually, decentralized trust will be accepted as a new and effective trust model. We have seen this evolution of understanding before – on the Internet.” -Andreas Antonopoulos
From the beginning, we’ve been mentioning and discussing decentralized finance and certain aspects, features and uses of it. We’ve used the term De Fi predominantly. But what is DeFi, and why is it so important to the free market and in our world today? Well, we’ve discussed this before in various content pieces of ours, but haven’t specifically elaborated on “DeFi”.
DeFi is an abbreviation for the term Decentralized Finance. Decentralized finance means that there is no central power controlling any transaction of funds, services or information. . Current financial norms consist of banks managing accounts and transactions, DeFi eliminates this central system and replaces it with a peer to peer network. DeFi eliminates middlemen, and gives finance a more open, innovative feeling, putting the individual parties in control of their assets, data and choices.
Decentralized networks cover a broad range of functions from Smart Contracts like Ethereum to DAPPs (Decentralized Apps), crypto currencies and many others. When things are transferred in a Decentralized manner, this puts people in control of their transactions and the terms around them; no one else touches their data or info unless otherwise permitted. This idea of decentralization is incredibly vital to a truly free market economy. The market wins, when the individual drives it.
