Словник

DeFi

A movement encouraging alternatives to traditional, centralized forms of financial services.

What Is Decentralized Finance (DeFi)?

Traditionally, almost all financial transactions involve an intermediary of some sort. When a customer makes a payment with a credit card, there are several parties involved, including acquirers and banks. At multiple stages, third parties have complete oversight of the details of the transaction — and the ability to stop or decline it.

The DeFi movement is based on the idea that the financial system should not be controlled by monopolistic third-party providers of this sort, and that it should instead be decentralized. Some have political or philosophical reasons to hold this premise, while others simply believe that it will increase the efficiency and speed of the financial world.

There is a large and growing range of players in the world of DeFi. Most major applications are built on Ethereum, which allows for the development of decentralized software. They make use of smart contract technology to minimize or completely remove the need for human or corporate gatekeepers.
DeFi providers are building alternatives to traditional financial services, as well as entirely new products. Existing DeFi applications include stablecoins, decentralized exchanges, and peer-to-peer lending services. DeFi is also the basis for the growing world of prediction markets.

Many commentators believe that DeFi heralds the future of financial services, and large bets are being made on DeFi start-ups. However, there have been several high-profile failures amongst DeFi players, and the field remains very much in its infancy.

DeFi should not be confused with embedded finance (sometimes known as invisible finance,) which is a movement within traditional financial services and fintech that aims to broaden access to banking and payments technology.

Related Articles

Easy
How-to Guides
Посібник із криптоінвестування для початківців
Якщо ви вирішили інвестувати у криптовалюти, але не знаєте, з чого почати, то цей посібник для вас.
Автор Daniel Phillips
6 months ago
17 хв
Easy
Tech Deep Dives
Що таке Polygon?
CoinMarketCap глибоко занурюється в аналіз Polygon (MATIC) та як він працює з Ethereum.
Автор Daniel Phillips
1 year ago
5 хв
Moderate
How-to Guides
Як карбувати NFT
Для тих, хто готовий застрибнути у вагон NFT, ознайомтеся з нашим посібником з самостійного карбування NFT.
Автор Andrey Sergeenkov
1 year ago
7 хв
Moderate
Tech Deep Dives
Що таке Binance Smart Chain?
Binance Smart Chain - це нова платформа, яка спрямована на зниження трансакційних витрат і надання простору для створення DApps та інших продуктів DeFi — як це працює?
Автор Werner Vermaak
1 year ago
6 хв
Moderate
Tech Deep Dives
Uniswap проти PancakeSwap
Зростання DeFi означає, що постійно з’являються нові платформи DeFi — як новий PancakeSwap відрізняється від оригінального Uniswap?
Автор Werner Vermaak
1 year ago
9 хв
Easy
Crypto Basics
Що таке Wrapped Bitcoin?
Wrapped Bitcoin - відносно нова концепція, але вона може виявитися важливою для забезпечення ліквідності DeFi.
Автор Decentralized Dog
1 year ago
3 хв