DeFi has been democratizing finance and will play an integral role in the future of finance. It is evolving at a rapid pace and is instrumental in creating a decentralised economy where anyone from anywhere in the world can now connect and transact with each other directly, opening a new range of possibilities for financial transactions that did not exist previously.
Based on blockchain technology, DeFi protocols and products rely on cryptology and smart contracts to execute transactions when predefined conditions are met. Decentralization allows you to become a part of the banking system, potentially helping to bank the unbanked. This is a very important element that ties in with the Sustainable Development Goal (SDG) of financial inclusion, adopted by world leaders at the UN Sustainable Development Summit in New York way back in 2015.
DeFi allows programmers to continue developing a wide range of secure and efficient financial platforms from anywhere in the world, bringing in rapid innovation and autonomy to contribute towards the global GDP. It brings in opportunities to the common person that were only available to large players, including access to international markets, access to new forms of lending and borrowing, faster and cheaper transactions, tokenization of assets, etc.
Crypto assets and DeFi in conjunction have been offering an alternative way of investing money, opening up the possibilities to earn positive returns on any capital employed. DeFi…
