What is DeFi? (animated explainer video)

What is DeFi? (animated explainer video)

DeFi stands for “decentralized finance,” an umbrella word for a number of cryptocurrency and blockchain-based financial applications aimed at disrupting financial intermediaries.

DeFi is inspired by blockchain, the technology that underpins the digital currency bitcoin. Blockchain allows several organizations to keep a copy of transaction history, ensuring that it is not controlled by a single, central source. This is significant because centralized systems and human gatekeepers may slow down and complicate transactions while giving consumers less direct control over their funds. DeFi is unique in that it extends blockchain’s utility beyond simple asset transfer to more complicated financial applications.

Bitcoin and many other digital-native assets differ from traditional digital payment systems like Visa and PayPal in that they eliminate all intermediaries from transactions. When you pay with a credit card for coffee at a cafe, a financial institution sits between you and the business, with control over the transaction, retaining the authority to stop or pause it and record it in its private ledger. With bitcoin, those institutions are cut out of the picture. #cryptodecoded

Видео What is DeFi? (animated explainer video) канала Crypto Decoded