Defi is a compound word of 'decentralize' meaning decentralization and 'finance' meaning finance, and refers to a decentralized financial system. DeFi does not require a bank, securities company, or credit card company that acts as an intermediary in the financial system, so you can use various financial services such as deposit and payment, insurance, and investment through blockchain technology as long as you can connect to the Internet without a bank account or credit card. can
Block Stars' corresponding service provides a solution to enable the Defi Development service business, from the creation of this Defi to the development of the NFT platform and the development of the exchange. There is a history, and these were conducted based on the BSC network. Ethereum networks are also possible. The company explains that it can be helpful if you are promoting related businesses because it provides consulting on all processes from NFT production, distribution, and listing, and even provides a marketplace platform.
An official from Manstar Co., Ltd. In the DeFi market, various virtual asset-based P2P financial services such as deposit/loan services that act like a bank in the traditional financial market, virtual asset transaction/exchange, derivative product issuance/transaction, virtual asset insurance, and credit creation are actively being operated. Among them, the most popular field is virtual asset deposit/loan service. AAVE, launched in 2017, currently has about 18 trillion won in virtual assets, 12 trillion won in its competitor Compound, and about 10 trillion won in Maker.
However, domestic virtual asset holders have had great difficulties in using major overseas DeFi services such as Ave and Compound. This is because most of the virtual assets traded mainly in Korea, such as AXS, Chiliz (CHZ), and TON, are not supported by overseas DeFi services. DeFi is the English abbreviation for what is called “decentralized finance” in Spanish. It is an emerging field that allows users to bypass intermediaries and make financial transactions directly with each other. Currently, it is gaining ground as an alternative to traditional financial services. DeFi already offers virtually the same services as traditional banks and centralized financial institutions. In addition, every day they launch new products and options to make transactions. So, let's see how DeFi differs from traditional forms of financing, how it is related to blockchain [link to “What is blockchain” article] and its many uses, from currency exchange to asset lending. digital.
What is DeFi?
DeFi is the decentralized financial services of blockchains , as opposed to “centralized” financial services, which are provided through banks or other traditional financial institutions. DeFi allows users to use cryptocurrencies in most services, unlike traditional banks, defi development company whose services require government-issued fiat currencies. Services include: lending money, borrowing, earning interest, trading assets, buying insurance, etc. These are usually faster, cheaper and easier, and new options and advantages are proposed every day.
What is decentralized finance?
Decentralized finance makes it possible to transact directly with other people through blockchain networks , rather than through centralized institutions like banks. In this way, intermediaries are dispensed with and financial transactions are made more agile, cheaper and more efficient. With DeFi you can access your assets safely thanks to digital wallets and formalize smart contracts to make transactions. This means that you can enjoy a wide range of financial services, from peer-to-peer loans to decentralized exchanges . By being accessible to anyone with the internet, DeFi makes finance much more accessible to everyone.
How does DeFi work?
DeFi uses smart contracts, also called smart contracts . Thanks to them, the intervention of a traditional financial institution, which would normally act as a guarantor of the transactions, is not necessary, but it is the users of the decentralized financial ecosystem who carry out the transactions directly with each other. These transactions are, in turn, protected by blockchain technology . Most DeFi products do not take custody of your funds, which allows you to maintain control of your assets.
With DeFi, you access your funds or assets through a secure digital wallet . When you want to make a transaction, you will be able to initiate it through smart contracts, which means that you and the other party will be agreeing to a series of specific conditions. For example, a smart contract can be created to send funds to a specific account on a regular basis and will be maintained as long as sufficient funds are available. Once the smart contract is established, it cannot be modified, so it will not be possible to redirect the funds and send them to a different account.
DeFi applications on Ethereum
As a blockchain platform that supports decentralized applications (dApps) and smart contracts, Ethereum is an ideal environment for DeFi development. The Ethereum blockchain maintains transaction history and account status, while Ether and other cryptocurrencies are used as assets. In turn, decentralized applications use smart contracts, thus giving way to new and innovative smart contracts. Since DeFi is an open source movement, its protocols and applications are widely accessible.
Ethereum is known for its flexibility and allows developers to create dApps with ease. This flexibility means that a DeFi solution already exists for most financial services with the constant ability to create innovative new financial products. Since many DeFi applications have been built on the Ethereum platform, many of these products can be used together without any issues.
