pxf
@pxf5588
DeFi (Decentralized Finance) is a blockchain-based financial system aimed at providing traditional financial services like lending, trading, saving, and investing in a decentralized way. Unlike traditional financial systems, DeFi eliminates the need for intermediaries like banks or financial institutions, allowing users to conduct financial transactions directly through the use of smart contracts and blockchain technology. Key Features of DeFi 1. Decentralization: - DeFi platforms are built on blockchains, usually public and permissionless. This means that no single central authority controls the system. Users can interact directly with the platform without needing traditional financial intermediaries.
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pxf
@pxf5588
2.Smart Contracts: Financial operations in DeFi are executed through smart contracts. A smart contract is self-executing code that automatically performs certain financial transactions when specific conditions are met. For example, lending agreements and exchange operations are managed automatically by smart contracts. 3.Transparency and Openness: All transactions and operations are recorded on the blockchain and are publicly accessible. Anyone can view transaction data on the blockchain, increasing the transparency of the system. 4.Global Accessibility: Anyone with an internet connection can participate in DeFi services anytime, anywhere. It removes geographic barriers and lowers the entry threshold that exists in traditional financial systems. 5.Trustless: Since smart contracts automatically execute transactions, users don’t need to trust any intermediary institution; they only need to trust the code of the contract. This is why DeFi is referred to as a "trustless" system.
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felixfancy
@felixfancy
I see
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