What is Defi?

As the technology develops, DeFi Dapps are here to offer a new perspective in how we do and utilize financial services today and the further days to come similar to how Apple revolutionize how we think about mobile usage through the introduction of the App Store and the iPhone. Since we are still in its primacy, it mimics similarly to the early years of when apps were being published and many things were experimental but rapidly improving day by day. Defi can also be seen as Lego bricks building on top of each other where many things can interact between different smart contracts providing a unique blend of services and use cases for the users to interact with in a decentralized financial ecosystem.

As Defi continues to expand, currently it can be defined into these categories with many more use cases to come in the near future:

As the space continues to develops, there are still problems to be solved such as speed of performance, higher risk of user error, bad user experience, cluttered ecosystem, and many more. The tech that drives the networks that is blockchain is still figuring out improving the speed of transactions that is currently way slower than the current traditional system. It is also prone to user error as lot have to be accounted for in order to set up to be able to use it but also require extreme due diligence since many of the tech are still experimental and mistakes can cause the user to lose their funds because they don’t know how to interact with it. Smart contracts for Defi are also prone to human error as the code written is as good as the person who wrote it. Even with the space being small, there are many projects out there and can be hard for users to be able to dissect which are best for their needs but also what projects fit within the Defi ecosystem as a whole.

Even with its shortcomings, Defi provides a novel idea in how we look into the world of finance and the technology associated with it. Its potential to open new paths and bridge gaps is similar in how the internet brought communication together, Defi can help bring the world’s finances together where we are able to freely leverage our own wealth free from the traditional financial and political system.

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