Background

The most common system of finance has always been the centralized system of finance (Cefi) and this can easily be talked about by anyone in the cities because they can see and feel it. But with the advent of defi, a decentralized system of finance, it is obvious that attention of most persons are divided. Much emphasis are no longer given to the centralized system of finance because the difference is clear and the benefits are enormous and can not easily be overlooked. Infact, the future of finance is defi and overlooking it means that one will be left behind.

I, for a person had been an employee of the centralized system and I understand how it works and that is, acting as intermediary between the owners of finance and the users of it. When one has excess cash and you can't or don't want to hold it because you don't know what to use it for neither do you even know who to give it to, you go to the the bank or the like, which is a centralized system and keep it after creating account with them.

On the other hand, those who have something to do with the cash but don't have the cash can go to the bank and process a loan with the bank or centralized system of finance. At the end when they must have met with the requirements, are granted access to the cash which they can make use of for an agreed period of time for a fee.

It is as simple as that. But how long will you continue to let third party know every moves of yours when it comes to cash considering the insecurities in the world and the delays of processing transactions? Well, that brings me to the main point of this contest.

I am glad to be part of this contest and thanks to the organizers.

Explain in your own words the DeFi world Why is it important? Let's talk about it.

√ Defi- Decentralized system of finance

When you talk of decentralized, it has to do with independence of transactions without any third party. So any system that eliminates the central point of transactions whereby one can just process his or transactions without depending on any third party whatsoever is known as decentralized.

So when a system of finance does not require the services of any centralized individual or organisation, it is a decentralized system of finance.

I have always dreamed of having absolute control of my financial transactions without depending on the centralized system like the banks due to their delays and fees. Thanks to the decentralized system of finance which has come to fit in with what I had dreamed of.

Decentralized system of finance is very important that it is embraced by all so that the amount of time spent on one financial transaction that is done through the centralized system will be eliminated.

Additionally, how can we even trust the centralized system when over time, they have proven that they can not be trusted. The services of decentralized system of finance is safe because it is handled by codes that can be scrutinized by anyone at any point in time

The fees they charge is enormous thereby making it burdensome to process a loan. The repayment schedule of the loan is such that you can never complete the repayment until they lay their hands on the collateral you had used to secure the loan and by then, you will be at their mercy.

Let's talk about the inconveniences of waiting for your transactions to be approved. The extras cost of contacting those responsible in case the transition delays due to one reason or the other. It is just not what I as a person wants.

All thanks to decentralized system of finance.

Additionally, the world is moving as fast as possible. Things are already complicated and any way that one can ease off with the problems of this world is admired and DeFi is just one of such.

Defi- Decentralized system of finance came into existence when Bitcoin was introduced by Satoshi but it wasn't the full version of it but it allows one access to his cash and had rules that can't be changed by any human or government.

It allows people to be the real owner of their assets, they can also move their assets around the globe because they have full control of it. It is at this background that the Ethereum network built on to provide a more sustainable system of decentralized system of finance with its smart contracts that programs ones money. With this, one can really trust the decentralized system because once the contract is in progress, no human can alter it or manipulate it.

With defi, one can have full control of his assets, send money anywhere around the world, take loan with or without collateral, trade cryptos, save cryptos and so on and so forth.

DeFi Vs Centralized Finance. Advantages and disadvantages, let's talk about them

DeFi	CeFi
Services are carried out using a set of smart contracts and algorithms	services are carried out by individuals or organizations
No much protocols because it is permissionless	A lot of protocols and requires a lot of permissions before a transaction is approved
There is trust	lack of trust
KYC is not required	It is a must
It is open to all	You must request access
Anyone can transact	must be done by the central authority or approved persons
Non custodial	Custodial
Low interest during deposit	higher interest during deposit
Less flexible	more flexible
Still in it's infancy stage	Has grown over the years
Have not undergone periods of tests to prove it's resilience	Has undergone different forms of tests

Have you used decentralized Exchange? Tell your experience and explain a Decentralized Exchange. Show screenshots.

Yes, I have used trust wallet. I started using a decentralized Exchange in the year 2019 when a friend of mine introduced Ethereum smart contract to me know as million money. I was not familiar with it and I couldn't just understand anything at all. But she guided me to download a trust wallet where I deposited my assets without having to do any verification or KYC. Do you know that since then, the assets are still safe and sound. I don't even think of whether anything can happen to it or not.

I was also able to make some cash outs without protocols but I still have some balance there which I will like to screenshot to you

	this is the screenshot of my Trust wallet as a decentralized exchange wallet

Give us your opinion about the future of DeFi.

Trust wallet is the decentralized Exchange wallet that is owned by Binance but it supports multiple crypto coins. This means that it can hold more than one coin. Not only that, it connects different Blockchains like the Bitcoin, Ethereum, Tron, and others.

It is an app that is free to download with Android and iOS. When I downloaded mine, I did it via play store and it was very easy. I set it up and got the seed keys which I secured. Though at the time I downloaded it, I didn't fully understand the importance of the keys but my friend who told me about it had emphasized the need for me not to misplace them. So I wrote them down.

But I kept the book where I had written it down very safe. After about a year, in fact, it was during the time I was trying to carry out one assignment in crypto academy here in steemit that I thought of looking for my trust wallet because that assignment had required it. By then, I already changed the phone where I had downloaded my trust wallet. Luckily to me, I found the paper where I had written the seed keys, then I downloaded the app again and with the seed keys, I was able to recover my assets in it. Everything was still intact. I was so happy at how much value my assets had gained over the period. Wow! What a trusted wallet!

I love Trust wallet, it doesn't share my personal information like my data with any third party.

Once the app is downloaded, every Blockchain will have access to it and this is so cool.

Contact information are shared between the transacting patties only.

Like my experience shows, because I have my seed keys well secured, I was able to recover my assets. That means that I am the only one that have access to my assets. Hence, it is very secure.

Trust exchange wallet and it's uses

source

Because the name is trust wallet doesn't mean that it only holds assets. It can also be used to perform different other functions aside that like buying cryptos, staking them. It can be used to swap coins and you can also use Trust wallet to store and spend stable coins at ease.

Give us your opinion about the future of DeFi.

With the increase in it's adoption and with the open arm with which it is being accepted by the majority, I see a situation where centralized system will be eradicated or reduced to the bearest minimum. As humans, we love independence especially in controlling our finances and DeFi has just come to provide that independence.

DeFi had been around for a short period of time and yet it is accepted by most people which shows that the shortcomings of CeFi have been taken care of by DeFi.

I see a future where DeFi will keep being improved on until it achieves a perfect system that can eradicate all shortcomings even though the world can not be 100% perfect but there will be significant improvement.

Since DeFi is more transparent and allows all to have access to it, I see a future where a lot of unbanked individuals will take advantage of it. There are over 1.7 million of them and imagine what it will be like if all starts adopting DeFi.

DeFi has come to stay and it opened our eyes to the realities.

Conclusion

I have been able to talk about the rise of DeFi- A decentralized system of finance and it's definition as a system of finance that eliminates third party where the users carry out their transactions directly without having to deal with a medium or intermediary.

I have been able to talk about the importance of DeFi, and have compared it with CeFi.

I have given my experience with Defi and given the screenshot as well

I have also talk about the future of DeFi in my own opinion.

I am grateful for the opportunity.

Some Ideas were gotten from

Source 1

Source 2