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As technology continues to advance the way we move money and conduct banking is evolving rapidly. Block chain and DeFi will take currency to new heights. What is block chain? Block chain is known as a list of transactions that anyone can view and verify. Block chain coincides with cryptocurrency as both are forms of technology that powers them to make it possible to transfer vale online without the need for a middleman like a bank or credit card company, Bitcoin, Litecoin, Ethereum, each of these cryptocurrencies are secured by block chain networks.
Advantages of Block chain: Global, Increased Privacy, and Open
How does Block chain work? Block chain allows an individual to monitor where their funds are going. If anyone attempts to manipulate a transaction it will cause the link to break, and the entire network will see what happened.
Satoshi Nakamoto created block chain by creating a whitepaper online explaining the principles behind a new digital kind of money called Bitcoin in 2008. Nakamoto’s initial goal was to create digital money that would make online transactions between strangers anywhere in the world without requiring a third party such as a credit company or a payment processor.
DeFi is also known as decentralized finance is a movement in the crypto industry which aims to disrupt central banks by offering bank-like services such as high interest-earning accounts, lending, and borrowing.
How Are People Using DeFi?
Lending- Lend out your crypto and then earn interest and rewards every minute-not once per month.
Getting a loan- Obtain a loan instantly without filing in paperwork, including extremely short-term “flash loans” that traditional financial institutions don’t offer.
Trading- Make peer-to-peer trades certain of crypto assets -as if you could buy and sell stocks without any kind of brokerage.
Saving for future: Put some of crypto into savings account alternatives and earn better interest rates than you’d typically get from a bank.
Buying derivatives- Make long or short bets on certain assets. Think of these as the crypto version of stock options or futures contracts.
Pillars of Centralization
I. No single point of power, failure, and authority.
II. Distribute responsibility to many parties.
III. We, the people govern the systems we use.
Perks of DeFi
II. Peer to Peer
III. Banking 101
If you want to find out more about DeFi click this link let’sdodefi.com
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