IS DEFI THE FUTURE OF FINANCE- STATERA A NEW TYPE OF DIGITAL ASSET
A smart contract is simply an automated and enforceable agreement that doesn’t require any third-party or intermediaries to execute. As long as you have an internet connection, you can access the smart contracts.
Decentralized Finance (DeFi) consists of a suite of applications and peer-to-peer (P2P) protocols created on blockchain networks requiring no access rights for easier borrowing, lending, and trading of financial tools. Many DeFi’s are currently built on the Ethereum terminal (network). Despite that, there are many emerging alternative terminals that aim to deliver superior speed, high security, more scalability, and lower transaction costs.
Today cryptocurrencies and crypto currency investing have exploded into a trillion-dollar industry, disrupting the financial world. The birth of cryptocurrencies dates back to the 1980s, when cryptography advanced. This also brought with it a whole new technology known as blockchain technology or decentralized ledger technology (DLT).
Since that time, a sequence of events has shaped the world of cryptocurrency investing. In the world of cryptocurrencies Bitcoin is the one that reigns supreme. It’s currently a store of value and even more expensive than gold. Most people that practice cryptocurrency investing call it digital gold.
Even though Bitcoin has grown over the last two decades, many financial institutions like banks and other corporations don’t want to adapt to it due to its highly volatile nature and lack of stability. Some institutions like PayPal and Tesla, however, have seen the value Bitcoin has. This has made them include Bitcoin in their day-to-day transactions and even adapt using it in their system.
Things change pretty fast in the crypto world. DeFi or in full, Decentralized Finance is the current trend in the financial world. The world of DeFi is the most exciting space to be in. For this reason, you’ll want to know all you can about decentralized finance and how it works.