What Is Defi or Decentralized Finance?

In today’s financial world, concepts such as. Defi or decentralized finance have emerged , but… What is defi? What importance does it have within. The evolution of finance and the emergence of DW Leads new investment and financing alternatives? In the following sections. We will delve into the new decentralized operations as an alternative to traditional banking, its ecosystem. Its innovation and its functionality. Know all the details about decentralized finance ! The concept of decentralized. Finance we can define the defi concept as the term that refers to financial services that work through. Blockchain or block chain . The abbreviation defi comes from the english word ” decentralized finance. ” whose translation would be ” decentralized finance “.

The Concept of Decentralized Finance

This name comes from one of its main characteristics. In conclusion, which is the possibility of exchanging assets and financial services without the need for intermediaries. Such as without the Korean phone number free presence of a financial institution. How the defi works regarding its development, its. Operation is supported by the use of the blockchain or chain of blocks. The blockchain consists of a network. Of participants that are connected to each other . To do this, they do not need a server that acts as a central and. They have the ability to transfer data and assets with greater security, between the users themselves. Mainly. Defi operations are established through smart contract.

Korean phone number free

Decentralized Finance Vs Centralized Finance

This type of smart contracts consist of computer programs. Regulated by the blockchain and that work automatically as certain previously established parameters are met. That is why the intervention of any institution that guarantees the transaction to be carried out is not required. Rather, it will be the individuals of the decentralized financial ecosystem themselves who will carry out the operations directly. Inesem business school master in data science for finance + 10 ects credits more information in addition, the use of the blockchain will serve to store and transfer assets in digital format, complying with the agreements established between the contracting parties of the smart contract. On the other hand, unlike what happens with financial products provided by a traditional financial institution.

Leave a comment

Your email address will not be published.