What is Decentralized Finance? How does it work?

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• What is Decentralized Finance? How does it work?

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Lets out with the past and in with the new
trend!. It looks like theres always a more
recent version of something coming out, and in
many cases, new is better like the latest
smartphone, gaming console, and in this case, you
are going to explore a new kind of finance?.
DecentFi enables the creation of new financial
instruments and digital assets. Yup, you are
ready to read the blog right. The Tools of
DecentFi helps to connect the users around the
world without any centralized point of
authority. Let me clarify what is Decentralized
Finance and how does it run? What does it signify
for finance to be decentralized? We know you have
a lot of questions, so lets break it down.
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What is Decentralized Finance?
Decentralized Finance (DeFi) is like blockchain
technology and can be defined as an advancement
in traditional bank services. Think of each
traditional financial service available now
savings and checking accounts, insurance, asset
trading, loans, and more. The main aim of the
DecentFi community is to create open-source,
transparent, and permissionless options for these
services. To accomplish the goal, decentralized
finance heavily relies on decentralized
applications (DApps). DecentFi is a peer-to-peer
network developed on a blockchain. Moreover, it
aims to reduce the gated nature of traditional
finance. Building applications with DeFi
protocols can disrupt traditional finance. For
example, peer-to-peer lending networks eliminate
the role that a bank plays in the lending
process. Cryptocurrency is also the best example
of the role DeFi can play in modern economies.
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The Benefits of DecentFi
1) Immutability Blockchain data is tamper-proof.
As a result, open audit trails and security are
easy to establish. It reduces the need for
security agents and processes that slow the speed
of transactions. 2) Interoperability Currently,
DecentFi protocols are built into Ethereum, and
this means applications blend easily with each
other. Its easy to increase protocols by
building new layers on top of existing ones. 3)
Permissionless Since DecentFi builds on a
blockchain, anyone with an internet and a crypto
wallet can access services on the network.
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4) Greater Control DecentFi protocols allow users
to manage the care of their assets. They dont
need third-party players to maintain security. As
a result, the monetization of assets and change
increases. 5) Transparency DecentFi protocols
are built using open source code that enables
anyone to view it, inspect it, and update it.
Transactions verify with the entire network as
part of security protocols. Our
Website https//www.decentfi.io/