{"id":1196,"date":"2022-10-07T12:29:03","date_gmt":"2022-10-07T10:29:03","guid":{"rendered":"https:\/\/cryptandco.com\/?p=1196"},"modified":"2023-01-18T17:27:29","modified_gmt":"2023-01-18T16:27:29","slug":"what-you-define-decentralized-finance-and-how-it-works","status":"publish","type":"post","link":"https:\/\/cryptandco.com\/en\/cose-la-defi-la-finanza-decentralizzata-e-come-funziona\/","title":{"rendered":"What is DeFi, decentralized finance and how it works"},"content":{"rendered":"

La <\/span>decentralized finance<\/b>, better known as <\/span>DeFi<\/b>, is a recent area whose introduction is linked to the Digital Revolution and the world of cryptocurrencies. It allows users to achieve financial transactions directly, proving to be an attractive alternative to traditional standard procedures. DeFi is a solution appreciated by investors and on the rise rapidly. In this article we tell you more about it.<\/span><\/p>\n

DeFi Crypto: meaning<\/strong><\/h2>\n

The term DeFi stands for <\/span>decentralized finance: decentralized finance<\/b>. If you are wondering. <\/span>what is De-Fi<\/b>, know that it is nothing transcendental. It is a financial branch that allows users to conduct financial transactions without using an intermediary, according to services that are peer-to-peer, then.<\/span><\/p>\n

Just because it is decentralized, it does not mean that De-Fi does not ensure that one can take advantage of the classic financial services made available by traditional banks and centralized financial institutions, so that transactions and new products can be realized every day. Solutions that see <\/span>public blockchain<\/b>, specifically concerning cryptocurrencies, especially the <\/span>Ethereum blockchain<\/b>.<\/span><\/p>\n

DeFi: why it has become important<\/strong><\/h2>\n

The reason why DeFi crypto has become important is because of the very elements behind its operation: the <\/span>cryptocurrency<\/b>. Decentralized finance starts with what has been worked out for its operation through blockchain networks, which take over the task that has traditionally been delegated to banks without the costs associated with the traditional system: from the offices, to those of a structure such as the stock exchange, to the very salaries of bankers.<\/span><\/p>\n

Decentralized finance makes it possible to realize <\/span>Free, fair, more accessible and open financial markets<\/b>, in a simple, fast and intuitive way. It is sufficient, in fact, to have an Internet connection.<\/span><\/p>\n

DeFi is, therefore, <\/span>one of the innovations born with digitization<\/b>, one of the phenomena that is rapidly revolutionizing finance. Something that is proving to be as interesting as ever, able to bring multiple benefits to people and open up additional investment opportunities. A major challenge even for classical financial realities.<\/span><\/p>\n

DeFi: how it works<\/strong><\/h2>\n

\u00a0The operation of crypto De-Fi starts from <\/span>Assets that make use of digital wallets<\/b> through which the <\/span>smart contract<\/b>, so as to carry out the transactions. These take place in a digital 100% manner, through <\/span>specific software called decentralized apps<\/b>, designed primarily for <\/span>Ethereum<\/b>. Other platforms that are experiencing steady uptake include Binance, Solana, and Cardano, which are developing applications not unlike Ethereum.<\/span><\/p>\n

Decentralized finance provides access to multiple <\/span>financial services<\/b>, according to a peer-to-peer mode. In detail:<\/span><\/p>\n