Jencotech PowerPoint PPT Presentations

The blockchain technology that fuels cryptocurrencies such as Bitcoin and peer-to-peer lending are a natural fit that may help overcome some of the inherent challenges with many peer-to-peer lending platforms today. Many experts believe that this innovative technology will prove itself as a groundbreaking solution leading to a new economic system, often called the blockchain economy. In this new financial system, rules defined by smart contracts will make sure that agreed-upon transactions are enforced autonomously. That’s why peer-to-peer lending in many ways seems like the perfect use case for blockchain technology as it can potentially allow lending platforms to establish a much less dependent trust relationship between lenders and borrowers. This use case is what we know of as decentralized lending platforms.

Decentralized finance (DeFi) is a variety of financial applications that are built using blockchain technology. More specifically, decentralized finance can also be referred to as a movement that focuses on providing an open-source, permissionless, and transparent financial system that is available to everyone and can operate without the need for any central authority.

Decentralized finance, or also known as DeFi, is one of the most popular things in the blockchain and crypto space. Fundamentally, decentralized finance takes existing financial products and services such as trading, lending, and borrowing, and puts them on the blockchain. By moving these financial products and services on the blockchain, the central authority is removed from the equation.

One of the newest innovations from blockchain technology is decentralized finance (DeFi). It is an emerging financial system that aims to solve the current problems in the traditional centralized financial systems. DeFi applications are mostly built on the Ethereum network and provide most of the population with financial services that were once limited. Anyone around the world can now have access to financial products by only using a smartphone and an internet connection.