Many of the financial opportunities offered through DeFi platforms are usually reserved for major financial institutions like hedge funds and banks. With no reliance on different parties or deal with wait times to complete a transaction, DeFi makes doing business a more seamless and fast experience from start to finish. Smart contracts are processed digitally on blockchain technology, so no paperwork and no wait time through the bank for transactions to clear.Īutomating the contract process on the blockchain takes away the need for human intermediaries, eliminating the need to engage outside mediators, like lawyers, to process agreements between parties. The goals of the DeFi network are simple: By harnessing the efficiency and power of smart contracts - digital contracts that live on the blockchain - DeFi platforms create a space for lending, borrowing, trading, saving and earning interest that doesn't require all of the usual bureaucracy and minutiae. In a financial world that is becoming increasingly digital, DeFi focuses on bringing the convenience of peer-to-peer transactions to investors. It sounds exciting - and it is - but what is it exactly? And what makes DeFi different from every other sector of crypto that you know? The thriving peer-to-peer crypto network is becoming a standard part of a diverse crypto portfolio, grabbing the attention of consumers and billionaire investors alike. If you watch the financial markets, you might have heard the words “decentralized finance,” or “DeFi,” pop up frequently. The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.īy Voyager's Charlotte Siller, provided exclusively to Benzinga Cryptocurrency.
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