In the era of technology’s growth at a faster pace, complexities have been reduced to the maximum, and things have their alternatives in order to reduce the consumption of time. 

People have become comfortable with "ONLINE". The success of technology is measured by the ability to produce results in seconds. 

Let’s get ourselves familiarized with this technology,  Defi ( Decentralized finance) development services. DeFi Services provide a wide range of financial services across the globe. The first and foremost purpose of defi is to replace the conventional procedures of transactions. Unlike banks, defi makes transactions in seconds and the records are very much transparent and we don’t need to pay for transactions. 

What is DeFi?

Decentralized Finance, or DeFi, is a word used to describe a financial system that is based on decentralized blockchain technology and does not rely on conventional financial intermediaries like banks or other financial organizations. DeFi enables the development of open, and transparent financial apps for everyone with an internet connection.

Without the use of middlemen, DeFi programs allow users to engage in decentralized peer-to-peer lending, borrowing, trading, and investing. Decentralized exchanges, platforms for lending and borrowing, stablecoins, and asset management protocols are a few of the main elements of DeFi. 

DeFi has become quite popular recently since it gives consumers more ownership and control over their financial assets, especially those who might not have access to traditional banking services.

Benefits of DeFi

Defi is accessible to everybody and it’s highly FLEXIBLE meaning anyone can make transactions anytime from anywhere. There’s no need for an account to invest or trade on defi.

Defi projects are built on the Ethereum blockchain and the traits of defi are similar to that of blockchain and hacking is not an easy task. As the records are immutable, no blocks can be inserted, edited, or deleted.

The term “decentralized” ensures no control by a single entity, organization or person. Defi allows you to invest, lend, borrow, and trade and it doesn’t ask for your personal details. 

Taking loans from banks involves paperwork which people find a long process. In the defi space, with required assets, anybody can take loans and compare the interest rates would be much lower.

Cryptocurrency and DeFi

Cryptocurrency doesn't exist in a physical form it just exists on the blockchain. Cryptos can be replicated, unlike NFTs.

Both Defi and cryptocurrency run on the blockchain and by means of smart contracts, which play a pivotal role in blockchain technology are computer programs/protocols that aid in making the transactions traceable, transparent, and irreversible. 

As smart contracts perform automated transactions, the level of accuracy can never be matched with that of manual transactions. Like a chemical process needs a catalyst to speed up the reactions, smart contracts enhance the speed of transactions that occur in no time. Smart contracts lend funds based on the criteria written into the code and take care of deposits and interest without human intervention. 

Companies such as newegg.com, and Microsoft accept cryptocurrency. An e-commerce platform named “Overstock” is the first site to have accepted Bitcoin. BitDials, an online luxury retailer, in return for bitcoins, offers the most expensive watches such as Rolex, and Patek Philippe.

Defi’s origin dates back to the introduction of Bitcoin to the public in 2009. MakerDAO is said to be the first-ever major project launched in 2017. MakerDAO operates on the blockchain.

Most people use the terms cryptocurrency and defi interchangeably. In a nutshell, defi provides a wide range of financial services whereas cryptocurrency is limited to the definition of “ cryptocurrency is a type of digital asset/currency”.  

DeFi is indeed the Future of Finance 

Defi is incredible in terms of technology and it takes time to work on the demerits. Over years and with the consistent improvisations of applications, defi could replace banks in all possible ways. 

In 2022, the number of defi users rose to 4.8 million and it is said that DeFi 2.0, or decentralized finance 2.0 is the upcoming version of decentralized finance. The Global Decentralized Finance(DeFi) market is believed to reach heights beyond imagination by 2030.

The terms DeFi, DeFi services, and DeFi protocols might appear to be strange altogether. The chances of DeFi becoming the most popular and used financial app are really high. So, making ourselves familiar with these terms and their functions will be beneficial for us. 

WeAlwin Technologies is a leading Defi development company that has 50+  DeFi developers of high caliber. We assist you to develop your DeFi-related services as per your needs. We offer you numerous benefits, including client-centric app design, customization, scalability, fast deployment, technical support, and advanced security features. You might be looking to get your DeFi-related projects done. If so, then feel free to approach us!