CRYPTONAIRE
WEEKLY CRYPTO investment journal
DEFI REMASTERED – THE WISE TOKEN SOLUTION
This article will explore the concept of Defi as well as create a comparison between traditionally centralized finance and the new age of decetralised finance. TRADITIONAL FINANCE – HOW IT WORKS The centralized authorities issue regular currency which further helps in driving the economy, and is used for different trades such as banks and government. Hence, the power of managing and controlling the supply and flow of these currencies is dependent on them. Apart from this, all the control on our assets is passed to different financial firms such as banks, with the hope to earn higher revenues. The issue with all of this is that because the fund, as well as the control, is centralized, the risks are also higher. This is where Defi comes into the picture! Defi (decentralized finance) has gained a great deal of prominence within the blockchain industry. Contrary to the decentralization of fiat money via Bitcoin, Defi aims to decentralize the traditional finance industry. The primary aim of Defi is to ensure that traditional financial services are available to one and all. Thus, Defi intends to provide a permissionless financial system, which is based on the blockchain infrastructure.
Cryptonaire Weekly | November 10th 2020
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