DeFi Guide with Radix

By uygarpelin | CryptoNygma | 18 Oct 2020


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What is DeFi ?

DeFi expression is created by combining the abbreviations of decentralized finance.

In other words, it refers to an ecosystem of financial applications built on blockchain networks. DeFi (decentralized finance) is a system that allows users to keep all their assets and all transactions under their own control through peer-to-peer (P2P)decentralized applications (dapps).
or
In technical terms, DeFi means a particular financial instrument that is composed of digital assets, protocols, and decentralized applications built on a blockchain network with smart contracts.

What are the advantages of DeFi ?

-DeFi’s advantages are that it facilitates access to financial assets. This system eliminates the financial order dominated by banks and provides a system without intermediaries. Thus, it makes it possible to reduce the transaction costs you will give in your transactions through banks and to make investment transactions easily even if you have a low budget.
-With the decentralized financial (DeFi)system, sending money is much more advantageous than the central financial system. While you can send money across the border at very high costs in the central financial system, you can send money at much more affordable rates with DeFi.
-DeFi applications do not need any intermediaries or arbitrators. The code sets how to resolve any possible disputes, and users always retain control of their funds.
-DeFi applications aim to enable people who are called “unbanked” to easily trade money or perform loan transactions.

What is the Purpose of Decentralized Finance (DeFi) System?

The purpose of the DeFi system is to remove the borders in the current central financial system and to ensure that anyone with access to the internet can easily invest and receive loans.
The slow operation of the central financial system, working through intermediaries, money transfer costs, criteria for lending, high loan rates keep many people away from the financial world. DeFi applications aim to enable people who stay away from the financial world called “unbanked” for some reasons, to be able to easily trade money or make loan transactions without hassle.

Decentralized Exchange

One of the most important DeFi applications are decentralized exchanges (DEXs). These platforms allow users to buy and sell digital assets without reliable intermediaries (exchanges) to entrust their funds to. Trades are made directly between user wallets through smart contracts.

Decentralized exchanges typically have lower transaction fees compared to centralized exchanges because they require much less maintenance work.

What does DeFi need ?

  • Fast, low-cost transactions.
  • DeFi need Security.
  • Another case is Scalable, composable applications

Radix provides solutions to multiple existing problems.
It overcomes the barriers for DeFi to grow by providing solutions to problems layer by layer

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Public Sale Link: https://tokens.radixdlt.com/

Official website: https://www.radixdlt.com/

Radix Official Twitter: https://twitter.com/radixdlt

Radix DLT Official Telegram: https://t.me/radix_dlt

Radix Whitepapers: https://www.radixdlt.com/#white_papers

Radix Blog: https://www.radixdlt.com/blog/

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uygarpelin
uygarpelin

Crypto Hodler.. Crypto and Blockchain enthusiast .. Technician.. amateur blogger.. HODOR.. HODOR..


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