Decentralized Finance - Becoming the Major Aspect of Blockchain Technology and Cryptocurrency

The past months have seen the rise of DeFi platforms in the blockchain and crypto space, making them one of the most talked about aspects of blockchain and crypto at the moment. In this post, I will be sharing my knowledge and giving my opinion about some amazing DeFi DApps; Maker, Compound, Synthetix, bZx and Uniswap.

Before going deep into the main topic, I will like to briefly explain what Decentralized Finance (DeFi) is and what they are all about. This is to lay the foundation for the other topics I will be talking about in this post.

Decentralized Finance or DeFi for short is basically the decentralized from of the centralized financial systems and services. In order words, it is a financial system that is decentralized i.e not controlled by a central entity and with no central authority.

Think of the current financial system where everything is controlled by a single or central authority… with DeFi, the aim is to disrupt that and bring full decentralization to the financial system. The main components of DeFi is having a decentralized infrastructure and secure and capable blockchain, decentralized exchange (DEX). With that out of the way, let’s move over to the main topic of today which is the different DeFi DAapps…

One of the main aspects of DeFi or any financial system is lending and borrowing. Much like what we see in the current centralized financial system, DeFi is the same but instead of it being controlled and handled by a central entity, DeFi focuses solely on decentralization and giving control to its users.

In simple terms, the way lending and borrowing works in DeFi is basically allowing its users to become lenders and borrowers in a permissionless and decentralized manner and still having full control of their assets. The lending and borrowing is handled by smart contracts, a big part of blockchain platforms like Ethereum which is the biggest player in the DeFi space. In the next post, i will be discussing some of the defi projects that are pushing the limits and creating solutions in the world of decentralized finance...