D for DeFi 😎

Is D for DeFi a decentralised Wifi 🤔? Umm that's not the case. Let us figure out what the hell is DeFi in a simple and interesting manner.

What is DeFi?

Decentralized finance (DeFi) is an emerging financial technology that challenges the current centralised banking system. DeFi eliminates the fees that banks and other financial companies charge for using their services and promotes the use of peer-to-peer or P2P transactions.

How does DeFi work?

Decentralized finance uses the blockchain technology that cryptocurrencies use. A blockchain is a distributed and secured database or ledger. Applications called dApps are used to handle transactions and run the blockchain.

Pros of DeFi

• DeFi offers high level of security and anonymity to the user.

• It has low fees and high interest rates.

• DeFi doesn't rely on on any centralised financial institutions and are not subject to adversity and bankruptcy. The decentralised nature of DeFi protocols mitigates much of this risk.

That's it for the day, Web3Shala Signing Off ✌🏻

Have a nice day :)Keep Learning 🙏🏻