Decentralized Finance (DeFi): A New Era in Finance:
Decentralized Finance (DeFi) is transforming the financial landscape. It is a system that leverages blockchain technology to provide financial services without the need for banks or conventional institutions. With DeFi, individuals can send, receive, borrow, lend, and trade assets directly, which empowers users to take greater control of their finances.
What Is DeFi?
DeFi operates on blockchain networks, predominantly Ethereum. These networks utilize smart contracts to facilitate automated transactions. A smart contract is a digital agreement that executes once specific conditions are satisfied. For instance, if a user takes out a loan, the contract ensures repayment based on the agreed-upon terms.
DeFi stands apart from traditional finance by eliminating intermediaries. In conventional systems, banks or brokers serve as middlemen. In DeFi, users connect directly through decentralized applications, known as dApps. These dApps are accessible to anyone with internet access.
How to Use DeFi:
Engaging with DeFi is straightforward but requires some initial steps. First, you need a digital wallet that holds your cryptocurrency and enables interaction with DeFi platforms. Popular wallets…
