DeFi stands for Decentralized Finance, which has become a huge part of the blockchain industry. DeFi aims to be able to carry out the same functions and more which blockchain does, with the exclusion of the middlemen that are required for the services. To carry these functions out, smart contracts come into play. Smart contracts are automatically enforced contracts that apply to all the users of blockchain technology, therefore eliminating the need for middlemen such as banks or lawyers. This elimination improves the efficiency as well as minimizes costs. For example, if you were to take a loan, DeFi would allow you to get that loan without a lender. Instead, your digital assets would be kept as collateral until the loan is repaid. In this exchange, the lender would be the smart contract itself and the interest rates are calculated using an algorithm based on demand and supply.
According to an article in The Conversation, between September 2017 and August 2019, the total value of DeFi contracts has risen up from US$2.1 million to US$6.9 billion (£1.6 million to £5.3 billion). This has created an increase in the value of all trademark tokens that are used for DeFi smart contracts, making way for new token-based startups to early success and the current ones to a continually rising value.
As we are living through a pandemic, the perfect time to embrace the change to cryptocurrency has arrived. Having required the need for social distancing and other laws, cryptocurrency provides the ultimate “no interaction” policy as the need for middlemen does not exist. All you need to be able to use the blockchain technology is a smartphone. Emerging organizations provide you with a platform where you can handle your finances and take part in trading all with the help of an app on your smartphone. For example, Zin Finance is launching an application that will allow you to link your debit card or payment source to its app and handle your finances, as well as take place is trading and staking of their token, Zin.
Looking at the success the blockchain industry has become, startups like Zin provide an easy-access platform with their applications, making it more user-friendly for adults. Zin Finance combines the investment tools of crypto and traditional stocks. The application makes trading seem like a game and staking being your “locked up” reward that you earn a bonus on. As we transform ourselves into the virtual world, these initiatives knock down an obstacle that our older generation faces and younger requires.
Here are some links if you want to follow up on Zin Finance: