Distributed ledger technology (DLT) is a distributed database administered by a group of users rather than a single administrator, and it promises a bright future for the financial and economic services industry. This transition will speed up beginning in 2023.Decentralized Finance (DeFi) and the underlying DLT technology will become as indispensable as the internet has become to our daily lives. We use the internet not because we have to understand how it works or why we should, but because of the convenience, efficiency, and accessibility it affords us.The Internet, or Web 2.0, is now giving way to Distributed Ledger Technology, or Web 3.0.<h3 id="first-let-39-s-define-decentralized-finance-defi">First, let&#39;s define Decentralized Finance (DeFi)</h3>DeFi&#39;s central tenet is the transformation of complicated financial services and products offered by legacy financial institutions into self-executing code, complete with all the necessary rules and procedures.What mean by &#34;self-executing&#34; or &#34;automated&#34; products and services is those that don&#39;t require any kind of human intervention from a third party (such as a bank, insurance company, agent, etc.) in order to be used by the user or consumer. The pros include availability around the clock, fast response, and low or no cost.Consider it the equivalent of a self-serve snack machine. A vending machine offers uninterrupted service at no expense to the customer at any time of day or night.The services offered by DeFi applications go well beyond the simple purchase of snacks etc. Furthermore, because every activity in the economy is transaction based, from retail to gaming to technology to social media, DeFi apps would connect the &#34;virtual world&#34; with the &#34;physical world&#34; and be integrated into any service or product we use today.<h3 id="so-what-39-s-wrong-with-strong-traditional-finance-strong-in-what-ways-may-defi-be-useful">So, What&#39;s Wrong With Traditional Finance? In What Ways May Defi Be Useful?</h3>DeFi applications use blockchain technology, which is a decentralized, peer-to-peer system that is accessible to anyone, anywhere, and has the potential to democratize financial systems by allowing anyone to have access to financial services.As transactions on DeFi are not governed by any central authority, users are free to do business whenever they like. It is a consensus system that rewards helpful behavior and discourages troublemakers among its members and users.If you are unbanked or underbanked, you will still be able to use DeFi. When conducting a DeFi transaction, it is not necessary to reveal your credit history or score. If you own a smartphone and have the necessary collateral on hand, you should be able to get a loan.There is no need for time-consuming and expensive clearing and settlement processes because there are no middlemen involved. Delays in settlement and excessive costs are therefore avoided.#FutureofDeFi #DeFi

This Is The Era Of Decentralized Finance (DeFi)

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