What is Decentralized Finance (#DeFi)?

Decentralized Finance (DeFi) or Open Finance aims to take this promise one step further. So, imagine if there was a global, open infrastructure where all the traditional financial services you use today (deposits, loans, trading, insurance and much more) could be accessed by anyone around the world with a smartphone and an internet connection. Over the past 2-3 years, Decentralized Finance has become one of the fastest growing areas in the blockchain and cryptocurrency world, both in terms of the number of users and the monetary value invested.

The vast majority of this growth has been built on the Ethereum blockchain. DeFi does not represent any cryptocurrency or value. DeFi represents a movement just like “Open Banking” or “Open Source Code”. Projects or platforms built on centralized blockchains can market themselves as DeFi applications. They can access financial instruments offered on DeFi, such as earning interest or borrowing money. However, the fact that they offer these services does not guarantee that they belong to the DeFi field or that they are safe. Central Finance = CeFi (Celcius, Nexo, Blockfi, etc.) The biggest differences of Decentralized Apps (dApps) from centralized applications:

1-Our funds are always under our control and we do not need permission to invest in any application through a non-custodial wallet.

2-One of the biggest differences compared to central applications is that the application (platform/protocol) works on a completely decentralized blockchain, that is, it is not controlled by any central organization. In this example, the administrative duties that we call managers in traditional finance are transferred to smart contracts, that is, code.

3-All transactions are finalized, that is, they cannot be changed by anyone, and can be followed transparently by everyone.