DECENTRALISED FINANCE by @cutlass

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Hello every one very glad to be a participant in this amazing community, this is my first post on the community and i hope to be a core member in this society

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DECENTRALISED FINANCE (Defi)

The DEFI can be simply explained as a peer to peer are a platform that offers its, users, numerous opportunities and services like staking, buying and selling of cryptocurrencies and exchanging of assets either to fiats or to other forms of cryptocurrencies, basically every opportunity offered by the centralised banks is being offered up in the Decentralised finance but with a better options like privacy and higher APYs or APRs
The Defi world revolves around Blockchain technology and cryptocurrency which entails no middle man, and opportunities to buy and sell in a distributed ecosystem, this entails that every user partaking in the blockchain has a copy of the ledger in real-time hence transaction is stored across every node partaking in the blockchain.

Some protocols built on Defi

• Non-Fungible Token
• Cryto wallets
• Dapps (e.g Zethyr, time, e.t.c)
• Exchanges (Centralised and Decentralised)

SOME PERKS OF DECENTRALIZED FINANCE (DEFI)

• ABSOLUTE CONTROL

The Centralized finance system we have had in place all this time has to obey policy set by the government like the bank could choose to freeze your account because the court ordered them to or one can even get licked out of his account for certain reasons, the decentralized finance system eliminated all that any asset of cryptocurrency you have in your possession is completely and permanently yours and you alone can approve transactions on your assets or cryptocurrency

• NO INTERMEDIARIES

In most cases often 8n the centralized fincance system when one wants to send money from one end of the world to another he has to go through some processes and filling out forms after doing all the stress still has to pay some certain amount as charges to the middleman sending to money or charges to the bank, the decentralized finance has no intermediary your transaction from any part of the world to any part of the world is strictly between you the sender and the reciever and the sending to anyone can be done from the convenience of our home without having someone look over our transactions and decide if it should be approved or not

• EARN MORE

The decentralized assets enables an individual to earn more than he initially invested in specific cases like yield farming where and individual gets to attain more assets by simply buying and holding a particular cryptocurrency over a particular period of time, and the rate at which you earn interest in defi is way more efficient than the return rate our centralized banks offer us

• TRANSPARENCY

This is a feature blockchain entirely is well known for the decentralized finance is open ledger anyone anywhere can go over transactions and check if really it occured, no more excuses of fake transaction details or any excuse at all if any transactions occurs it can be reviewed or seen by amyone and everyone from around the world

DOWNSIDES OF DEFI

• HIGH VOLATILITY

With assets like the ethereum and bitcoin one can make money a lot of money over night and loose it all within the blink of an eye also, the Defi space requires quite a lot of analysis before making purchases because of high volatility in the market.

• GAS FEE

Blockchains like the Ethereum in the Defi space have been seen to require quite lot gas fee before a transaction can be approved, in some cases the gas fee rises as high as 20$ depending on the transaction you are carrying or the quantity

• ANONYMITY

This can be an advantage and in the same time a disadvantage, users participating in the Defi space are usually unknown to each other which means that this space can be perfect for fraudulent activities as no one cares what your real identity is, and in case of wrong transaction no one can be held accountable.

Thank you for stopping by