DeFi | Decentralized Finance
Decentralized Finance is the foundation of the Viralata Finance ecosystem. DeFi is a way of investing/reserving value that goes beyond the tradition of banks.
This new modality of finance emerged around the years 2016/17 thanks to the application of smart contracts on the Ethereum network. Since then, many other networks have become compatible with smart contracts and the market is booming.
The premise is simple: There is no centralizing body or a single person with decision-making power. The processing and decision power is collective, using highly distributed networks and powerful consensus algorithms to validate a transaction.
The end of the need for an intermediary entity narrows paths and removes barriers in an increasingly globalized world. Money distances are shortened and bureaucratic barriers disappear. It's not hard to find articles on the internet claiming that DeFi is revolutionizing the global economy.
“DeFi may lead to a paradigm shift in the financial industry and potentially toward a more robust, open contribute, and transparent financial infrastructure.” - Federal Reserve Bank of St. Louis.
Bringing this to our reality, it was as if a bank was no longer necessary to arbitrate whether this money actually belongs to you or not. That role is now performed by the network of servers that make up a blockchain. This network, in turn, is assembled with different algorithms and strategies to prevent fraud and attacks. Interacting with smart contracts allows investments, loans and different financial activities to be done between you and a programmed logic (contract), without relying on an intermediary consuming fees or regulating what you can and cannot do.
https://viralata.finance/en #crypto #binance #eth #bitcoin #viralata #defi #btc #finance DeFi | Decentralized Finance
Decentralized Finance is the foundation of the Viralata Finance ecosystem. DeFi is a way of investing/reserving value that goes beyond the tradition of banks.
This new modality of finance emerged around the years 2016/17 thanks to the application of smart contracts on the Ethereum network. Since then, many other networks have become compatible with smart contracts and the market is booming.
The premise is simple: There is no centralizing body or a single person with decision-making power. The processing and decision power is collective, using highly distributed networks and powerful consensus algorithms to validate a transaction.
The end of the need for an intermediary entity narrows paths and removes barriers in an increasingly globalized world. Money distances are shortened and bureaucratic barriers disappear. It's not hard to find articles on the internet claiming that DeFi is revolutionizing the global economy.
“DeFi may lead to a paradigm shift in the financial industry and potentially toward a more robust, open contribute, and transparent financial infrastructure.” - Federal Reserve Bank of St. Louis.
Bringing this to our reality, it was as if a bank was no longer necessary to arbitrate whether this money actually belongs to you or not. That role is now performed by the network of servers that make up a blockchain. This network, in turn, is assembled with different algorithms and strategies to prevent fraud and attacks. Interacting with smart contracts allows investments, loans and different financial activities to be done between you and a programmed logic (contract), without relying on an intermediary consuming fees or regulating what you can and cannot do.
https://viralata.finance/en
#crypto #binance #eth #bitcoin #viralata #defi #btc #finance