DeFi: Decentralized Finance - Vorphy

DeFi is a buzzword you'll likely hear more of in 2022. Decentralized finance (DeFi) refers to applications built on public blockchains that provide financial services without centralized intermediary.

Guess what? This new financial system is built on secure distributed ledgers, similar to those used by cryptocurrencies.

Several platforms are leveraging this technology to allow consumers to lend or borrow money from others, trade cryptocurrencies, hedge against risk, and earn interest from savings accounts.

As you might have guessed, it's called Defi:

Decentralized Finance.

We will learn about the decentralized financial system in this article, including how it works and how it works in the IT world.

What is Decentralized Finance (DeFi)?

Enabling individuals, merchants and businesses to conduct financial transactions using emerging technologies, decentralized finance cuts out the middlemen.

The peer-to-peer financial network uses the security protocols, connectivity, software development and hardware used to achieve this.

Simply put, if User wants to borrow $55,000, User must have assets or money in the bank as collateral. The bank manager (user