WHAT IS DECENTRALIZED FINANCE?let's briefly look at the term decentralized finance

This system aims to establish an open-source, permissionless, and transparent financial service system that is available to everyone and operates without any central authority.
It simply, means *you being your own bank* and having full control of your money 🤑🤑💰

Succinctly, the point I want you to get is that Decentralised finance is more like the traditional banking system replicated on the Blockchain but this time around *you being incharge of your funds*

There are driving forces adopted by the system without which the system cannot operates there include:

✨Blockchain
✨Cryptography
✨Smart contract
✨Liquidity
*Cryptography* is the act of achieving security by encoding or encrypting messages to make them non-readable.

Here in order to make informations secured in the Blockchain,the messages are encrypted into codes this codes can be decrypted to it original form to make it readable.
For example date of a locked liquidity
20014500(encrypted)

This codes of number is simply telling you:
13th of may 2022.

BLOCKCHAIN: it is the system of recording information in a way that make it difficult to hack, change or cheat the system.
They are immutable or unchangeable digital ledger of transaction distributed across the entire network which are linked and secured using cryptography.

Smart Contract
The creation of Ethereum by vitalik brought about blockchain 2.0 which has to do with the integration of smart contracts based ledgers, DAPPS(Decentralised apps) DAO(Decentralised autonomous organization) and the likes
What then Is a Smart Contract?

Smart contract is the Brain of DeFi, it is an agreement between two people in the form of computer codes, which runs on the block chain, stored on a public database.
transactions initiated by smart contract are processed in the Blockchain and sent automatically without a third party.
The code controls the execution, and transactions are trackable and irreversible.
Because it permits trustless transactions and agreements to be carried out among anonymous parties without the need for a central authority
LIQUIDITY
Liquidity is very important in Defi. tokens without liquidity cannot be sold or bought is as simple as that.
*What is this liquidity*
Liquidity is simply the ease in the buying and selling of tokens without affecting their prices
DeFi is changing how finance is working in many ways. One of the most interesting ways is the ability to power the financial market with liquidity pools.
They are different pools elaborately programmed for liquidity in DeFi in various scenarios, and their application is growing
What do you need to get started?
Why should one engage in Defi?
How do you make make money from it?
We will discuss all this in the next post.

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