DeFi (Decentralized Finance) - an opportunity or a risk for our money?

Money rules the world and the control rests with a few so of course the call for more justice is growing a term that comes up more and more often in this context is the file service provider finals but what exactly is it and how is that supposed to ensure more equality you ask maybe now for many, the whole thing may even bring a chance for our money so this southwest fine could improve or even replace our existing financial world and I will perhaps be able to wait for us in the future with more exciting application possibilities the banking system is far from perfect on the contrary a few make decisions behind closed doors the millions or even billions of people influence so much, for example in the financial crisis of 2008, the word systemically important so the banks are so anchored in a system that they have to be bailed out without actually preventing a meltdown of the markets, which prevented manynot to play with the high risk and ultimately burn your fingers but apart from the crises and scandals, the banks are characterized by high costs and inefficiency, of course, they try to break through these old and encrusted structures with technology, but of course the barriers to entry are also very high high in this market huge amounts of capital are needed and the market has to be discussed the problem is that the fixed amounts then often make losses or are dependent on investors and unfortunately it is also a bit so that these new fynn tags are mostly just old in a new guise So they used existing structures and nothing really changed about the same system, so many people ask themselves that these existing problems cannot be solved or is there something better and in fact the word that specialized finance is used more and more often means that it is a decentralized financial economy the existing mechanisms and to decentralize the functions of the traditional financial world and thereby make the middleman or his house bank obsolete by replacing them in a very simplified manner with smart contracts, of course, everything that can be assigned to the financial sector can fall under this, loans, insurance, trading, decentralized exchanges, payment processing and many more, the smart contract itself takes on the function of trustee so, for example, a purchase contract can be processed via the blogs chain the blogs chain ensures a smooth process between the payment and the exchange of the asset and in the future everyone with access to the internet could use such systems use because today there is still a lot of barriers to having such a banking system an example of how this smart contrexx could look in the future you read a car a beautiful new lamp because your crypto activities lately have made it possible for you to do the monthly to spend leasing installments and your friends are always wondering when, however, because of your new jet set life, you forget the dual script in berlin, he is now the prince of your cyclists to pay the bank the smart contract built into the vehicle software is therefore on your failure attentive and automatically sets a reminder period in which you can still pay the installment. The program code for locking the vehicle is automatically triggered and the leasing bank is informed of the location of a car from the dream of driving lamps provided by smart connect So make sure that you can keep the car for as long as you can pay for the leasing installments for a long time, but all the basic conditions are met by the provider non-payment is a process of mi t costs time and trouble, the smart contract automates this entire process, which of course makes the whole thing faster, easier and more cost-efficient because it saves on the one hand, but of course also applies to the provider and will then possibly have a positive effect on the prices that has the intel as a result you can get a lambo cheaper or you can increase the mesh overall and thus the shareholders could earn more money again as in the end and reading that limburg is not the only field of application that you could use here to buy a property without the annoyance going to the notary is no longer a problem because block 10 is also precisely saved to which the property belongs to one of the largest application platforms for smart contrexx you may already know this is now the question why one should use these decentralized financial markets at all benefit or what advantage does it offer for us? the defy is still borrowing and lending money so the credit management in detail space the whole thing does not work, however, from the videos of house banks, but a bit more like a pawn shop

So you bring a deposit with, for example, this crib advertisement and you can then ley liquidity for it to compensate for interest loss the biggest advantage is that you are not dependent on the benevolence of the bank you have to identify yourself again dress smartly refer to a flawless credit rating have been a customer of the bank for decades and cannot be discriminated against based on their origin, job, gender or other characteristics the good is so how much speaks the existing hurdles and barriers for many people to be able to participate in the financial market or to participate there but according to the world bank in 2017 more than 1.7 billion people aged 15 and over had no access to a bank, even if the number is steadily falling, there are still too many and so it is rgt for an inequality if people cannot even have access to absolute basic services from the financial world, the fei could solve these problems and democratize the financial world a bit because of course currency barriers but also country barriers are getting smaller and smaller but the whole thing will not take up here yet We now have the recent situation gamestop there was a trade stop only in and usa but also at the german broker trade republic that of course annoyed many because they would relinquish part of it in the detail space the whole thing would not be possible there individual parties could not simply do the trade So trading would also become democratized and it would become easier. The first shares in the form of dry ones have already appeared on the market and sooner or later will not only enable 24/7 trading that we already recognize from the cryptic, but maybe even the broker as a middleman himself a graduate build the future smusik no question, but today everything is technically possible on the site the fei puls dot com are currently 50 billion us dollars in the eco system as total value that may not happen here, but if we do jumping to the view of the year shows that a year ago it only attracted 1.6 billion euros, the best it has grown massively even if the entire grips space has recently cooled down a bit, yes and if you own such a small part here You can even participate in the whole system today and be your own bank, so to speak Recording as we know it from the old banking system is no longer traditionally via this bank but via algorithms and the whole thing is then in the hands of the user without them having to trust each other via the latter live app you can directly lend stable coins such as those that trek the value of the dollar and generate interest and all that with the security of a hardware bolles in detail that is all the work and a little more complex in which I would like a video then please write the comments below then we might take a closer look at the compound protocol but it is only one way to borrow money and we have already had a loan video made on the topic what we are going to link again at this point an overview of all central and decentralized lantiq protocols and the current interest rates are available on wage scan, I link you to the page below the description but the whole like file system or its kosmos are of course not yet perfect for many normal users these products are usually still too complete ex or become quite difficult in the details, for example, you can tell from the handling of some wollitzs, such as measuring meters, it sometimes becomes a bit like a magiccube turn and turn drinks only in the hope of finding the right solution at some point, so there is still a lot of potential in the detail space because you can of course increase the usability that everyone can participate in the system without having to complete a doctorate anyone who has ever done so has bought corrupt currencies or has moved from point a to b realizes very quickly personal responsibility is very important here because you can't just call a hotline and say ey I have a problem here because there is not really a safe transfer from a to b works or you can safely store the bitcoins & co

Another problem is that this smart contract is not 100% secure. These were programmed by people and people make mistakes or bugs can be contained in the software, which of course can lead to problems that is of course a risk for our cross or for such smart contracts, but also here there are already the first approaches of decentralized insurances against smart contracts want to insure bugs in the future, which would certainly help with the adoption because it would help people against possible loss of the defy The decentralized insurance market could also play an equally important role in all classic insurance areas in the future. Another problem that some projects have is that they are not as decentralized as they may have to be not spe Targeting registration and privacy is protected to a certain extent, but behind the projects are mostly large companies that control or just give out smart contrexx in the end, the question arises to a certain extent is the injured chance or a risk for our money, what we can hold on to is that the financial world has always changed, so it has mostly become faster and more efficient a lot earlier maybe from swapping cuddles as teachers used to say on islands about maybe coins but then to the internet servers paypal and co fynn The whole thing presented faster and more efficiently a decentralized financial world could be the next building block in the evolution of the financial world, so the more products are developed and the easier it is to use them, the better it is for the overall system and it doesn't have to be the old one system is completely replaced but it could be an adaptation of st find or a hybrid system will be developed but the low interest rate policy is of course a driver for the details base because there are some and still returns that no longer exist in classic overnight money and so the details base will remain interesting for the next few years so what do you think gimmick or future?