I have always thought that to understand something it is much easier to do so by comparing it with what we already know. For this reason, talking about decentralized finance or DeFi, already gives us a clue as to what we could compare it with, and in this case it is basically with Banks, which centrally manage global finance.
We could say that we deposit our money, in a traditional way in a bank, and this "saves it", in return it generates interest as a profit.
The bank uses part of those resources it has to make loans to other people, who will pay interest well above what the bank pays us. But the great current detail is that the interest we get for saving our money is really low, and inflation consumes it.
But even when we do not earn anything, in fact, we could say that if we keep money we are really losing, because they charge us an account management fee, and if we add the effects of inflation we are basically paying to keep our money, but additional to that, the bank uses our money to produce more money.
Decentralized Finances arise as a response to all this, with the intention on the one hand that there is no type of intermediary, because everything is executed in an automated way, on the other hand, Money is at our disposal most of the time in a Wallet.
It should also be noted that the interests for having our money in a DeFi system are higher, and that you have a daily profit for having your money invested there.
In general, this is one of the things that differentiates one from the other way of keeping our money backed up somewhere.
It is not easy to visualize this Decentralized Finance, but there is even the possibility of obtaining loans in some of them. As you can see, it has practically all the characteristics of a bank, but with the great difference that it is not only the bank that wins, but also the investors.
I will be sharing content regarding this topic, which I consider important and transcendental to master while already in the cryptographic environment.
Currently, related to Steemit, @xpilar and his team are carrying out a DeFi Project, specifically on the TRON Blockchain. Where the Token WOX is the protagonist.
Here are some links that can serve as a guide:
- Learning to Stake WOX Token - WOX-EXCHANGE
- Liquidity Mining is Now Live and Working!
- Liquidity Mining is Now Live and Working!
You can also check the official blog of the project: @woxexchange / Make sure you do your research before you invest..
You can also have information by entering the official discord group: https://discord.com/invite/8FZ6WGkEzs
I authorize the use of this banner to everyone who wants to do it.
Twitter | Instagram | Discord | Youtube | Telegram: @josevas217
 |  |  |
|---|
I just love how you explain it in the first part what Defi can be compared to. I Really love the explanation because I also have learned from it.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
thanks for the support. I always rely on comparison to make something easier to understand.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hi dear firend @josevas217
There is no doubt that DeFi is the future of the economy personally I am going to raise money to invest in DeFi, I guess that wox is a great option
god bless you
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
DeFi still has many issues to resolve, such as the impermanent loss, however, it is well on its way to something much bigger.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
It's hard not to run with ideas of crypto innovation when embarking to explain the fundamental economic change DeFI offers. I've found that incorporating the word automation, and in ways that traditional finance simply cannot match, helps the matter.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Automation, certainly...
It's what has made all this possible. Through smart contracts.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Greetings @josevas217 ❤️💕❤️
This is why I prefer Defi to our normal banking system. The banks win when people keep saving their money inside the bank unlike Defi where the investors win. Defi all the way and Defi to the moon 🚀🚀🚀🚀
Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead ❤️💕❤️
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
hello @josevas217,
I think many people don't understand traditional finance and when they try to learn decentralized finance it makes it harder for them to understand, we are currently living in a historical moment in which money seems to be changing. if money changes the mechanisms for saving, investing and spending will also change, that's why we must learn as much as we can.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hello dear friend, very good analogy between DeFi and the traditional banking system, it is clear that with the traditional system the only one who wins is the bank, I think that is the first thing we must understand to enter the DeFi world, eliminating the intermediary certainly provides greater benefits to the parties.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Greetings @ josevas217
A very interesting explanation of how banks work in relation to decentralized finance m no doubt they have similarities of investment , with its implicit risks , but in general way in both we can obtain passive guanacias.
The WOX-EXCHANGE project is very interesting and they have very attractive percentages for investment in this first month.
Thank you very much for sharing
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yes, everything has its implicit risk, just as you say. But I always now consider that it is more risky to keep money in a bank than in an investment.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Your post is manually rewarded by the
World of Xpilar Community Curation Trail
STEEM AUTO OPERATED AND MAINTAINED BY XPILAR TEAM
https://steemit.com/~witnesses vote xpilar.witness
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you for your support.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Congratulations, your post has been upvoted by @scilwa, which is a curating account for @R2cornell's Discord Community. We can also be found on our hive community & peakd as well as on my Discord Server
Felicitaciones, su publication ha sido votado por @scilwa. También puedo ser encontrado en nuestra comunidad de colmena y Peakd así como en mi servidor de discordia
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you for your support
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
@tipu curate 2
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Upvoted 👌 (Mana: 2/6) Get profit votes with @tipU :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you my friend
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
You did explain in details, very nice one..
Good work.
Regards,
@davidad
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hello @josevas217!
This topic is really important to be read by those who are already involved with cryptocurrencies and Defi and those who aren't yet as it provides one of the biggest advantages of decentralized finances over the centralized ones. Saving money in banks nowadays as a way of investment isn't profitable at all as you mentioned, yet some people think it's the safest way to not take any risks and still earn some money which I believe is completely wrong mentality as people from this group are missing way many opportunities in their lives.
Great read, thanks for sharing!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Very well explained DeFi system is an advanced system that gives everyone freedom to put their money into work this new evolution will in time displace the banking system thanks for sharing.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The comparison between Defi and the traditional financial system is a nice way to explain stuff clearly. Thanks for taking the time to write this piece
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit