Defi Trends And Development
Defi Development
Top 10 DeFi Trends 2024
What is Decentralized Finance?
Decentralized Finance is a state-of-the-art financial model that leverages blockchain technology to offer financial services like investing, borrowing, lending, or trading virtual assets without the intervention of an intermediary.
DeFi platforms employ smart contracts (a pre-coded algorithm) that execute certain functions when the specified criteria have been met by two parties involved in the transaction.
How does DeFi Work?
DeFi is a modern fintech solution that automates and executes financial transactions without the involvement of central authorities like banks or financial organizations.Smart contract implementation in DeFi-based platforms removes the complexity involved in traditional finance and saves processing time & cost due to the automated execution of the process. The intermediary cost, processing time, and man-made errors are avoided by removing the central authority or the intermediary.
In the DeFi-based platform, all the transaction-related information is stored on a distributed ledger which can be accessed and validated by the platform user. It improves the trust and transparency of the platform, which are the main advantages of DeFi-based platforms.
In addition, the user can save, borrow, lend, or swap crypto or virtual currencies using the internet and smartphone from anywhere, at any time. The platform is more secure and advanced, enabling better integration and greater convenience.
Important Stats & Facts on DeFi Niche
Some facts & statistics on the decentralized finance industry that represents the thriving phase of DeFi are:
