on the crypto
The movement around the decentralized finance (DeFi) is gaining rapid traction and many believe it is DeFi who dominates the blockchain space. Let's find out what it is and why DeFi is a big problem for the Crypto Community.
DeFi continues to grow: a true revolution in the crypto industry
In recent years, the Fintech it was one of the main themes that dominated the debate on the use cases of blockchain technology.
The theme of Blockchain in the financial sector it has always been a hot topic: the Swiss and Australian exchanges have taken appropriate measures to incorporate the distributed ledger technology.
However, within the community, the movement around decentralized finance (or DeFi) is gaining rapid traction.
One commentator predicts that DeFi will dominate the blockchain space for the 2019 year, while DeFi initiatives have dominated the hackathon of ethdenv is in February, highlighting that the Ethereum community is at the forefront of DeFi.
About DeFi
To explain what DeFi is, we need to distinguish between the traditional financial landscape, Fintech and DeFi.
In recent decades, companies operating in the Fintech sector such as PayPal, Transferwise e Revolut have started to compete fiercely with traditional banks.
However, both the conventional banks and the Fintech companies are centralized: a bank or the company acts as an intermediary for the transactions.
Bitcoin and other cryptocurrencies have introduced the concept of decentralized finance, peer-to-peer, which is the backbone of the DeFi movement.
The DeFi movement is linked to a decentralized ecosystem of cryptocurrencies, tokens, Exchange, Wallet and other blockchain-based infrastructures.
DeFi is a real opportunity to create a financial system that is completely different from the previous one that can coexist with traditional banks and Fintech companies.
Who is involved?
The DeFi movement has now consolidated into a more coherent community, which shares the principles of open source decentralization and is accessible to all.
Some of the biggest projects based on Ethereum participate in the DeFi movement.
MakerDAO is among the largest with over $ 280m of ETH focused on Maker tokens as a guarantee for the creation of the stablecoin DAI.
