This article is NOT financial advice*
In the past couple of years, crypto has been disrupting the traditional financial system. Bitcoin is an obvious example, but not the only one. Crypto is changing finance from its very core. Cryptocurrencies are a new asset class with two defining characteristics: it’s decentralized and encrypted. Decentralized finance (DeFi) is a significant disruptor in the crypto space. It’s an ecosystem of financial applications based on blockchain technology and run without a central authority. Not only do smartchain cryptocurrencies allow users to be their own bankers, they also give them access to many financial tools and services that they can use to optimize their portfolio or even start trading.
for the past couple of years, crypto has been disrupting the traditional financial system. Bitcoin is an obvious example, but not the only one.
Many new cryptocurrencies have been created over the past couple of years, and they’re all vying for a piece of the pie. These are sometimes referred to as “smartchain” or “Smart contract” cryptocurrencies because they provide users with more advanced features than traditional currencies do. Smartchain technologies also enable new use cases for crypto assets that aren’t possible with bitcoin alone.
Bitcoin is a decentralized currency that allows users to be their own bank. However, smartchains expand on this concept by providing additional functionality—and there are many different ways in which smartchain technologies can do so! Some examples include decentralized lending and borrowing, liquidity pools, leverage, arbitrage, collateralized loans, and pretty much anything you can think of!
A new asset class with two defining characteristics: it’s decentralized and encrypted (this means that no one other than yourself can access your funds). This allows you complete control over your money at all times while keeping them secure from hackers or other threats; additionally, you don’t have any third party involved in managing your transactions so everyone has equal access when performing other functions such as sending/receiving money or buying products online through websites like Amazon!
Crypto is changing finance from its very core. Cryptocurrencies are a new asset class with two defining characteristics: it’s decentralized and encrypted.
The cryptocurrency market has changed finance from its very core. Cryptocurrencies are a new asset class with two defining characteristics: it’s decentralized and encrypted. The first is due to their decentralized nature, which means no single entity controls or verifies transactions on the blockchain. This ensures that users truly have control over their funds, as well as any transactions they make using them. Encryption ensures that each transaction can’t be stolen or altered by third parties—or even those who control the network itself. The second defining characteristic of cryptocurrencies is also what makes them so powerful: encryption powers all financial interactions made using these digital assets and makes it impossible for anyone else but you to access your money without your consent. In other words, when you’re spending cryptocurrency, there are no banks involved in approving or denying your transaction; it’s just like sending an email with attachments in that regard!
What does decentralization look like in practice? It allows users to be their own bank!
When you think about it, that’s pretty revolutionary. Now, instead of having to trust a centralized third party for your money (like a bank or online payment service), you can be your own bank and hold all of your assets.
This opens up the possibility to create new economies around decentralized finance. Imagine being able to use cryptocurrency in everyday life as easily as we use cash today! You could buy groceries with bitcoin at the local grocery store, pay rent with crypto on Airbnb or maybe even finance your next car. This could help expand crypto beyond its current niche market into something more mainstream—and thus help increase adoption rates overall.
Decentralized finance (DeFi) is a significant disruptor in the crypto space. It’s an ecosystem of financial applications based on blockchain technology and run without a central authority.
Decentralized finance (DeFi) is a significant disruptor in the crypto space. It’s an ecosystem of financial applications based on blockchain technology and run without a central authority. As a result, these applications are peer-to-peer, meaning users can interact directly with each other without needing a third-party intermediary. One example of such an application is Ethereum’s decentralized lending platform, ETHLend.
Ethereum is used to power DeFi because it has more robust smart contract functionality than Bitcoin does; this allows developers to create complex financial products like lending protocols and prediction markets (like Augur).
Before we continue, let’s talk about what a smart contract is! A smart contract is a computer protocol intended to digitally facilitate, verify & enforce the negotiation or performance of a contract.
So, what is a smart contract? A smart contract is a computer protocol intended to digitally facilitate, verify and enforce the negotiation or performance of a contract.
Smart contracts are written in code, which makes them immutable and irrevocable. The code can be thought of as money, but instead of being controlled by one entity (i.e., the government), it is controlled by everyone on the network.
The execution of these digital agreements happens automatically once certain conditions have been met and ensure that such parties cannot back out if something goes wrong with their end of an agreement. In other words, either party can’t cheat because both parties must honour their part of the deal in order for anything to execute correctly! This means that they’ll need access to all their information at once so they can see exactly how much money each person has available before making any transactions happen.”
Now let’s get back to DeFi! Various projects can be grouped as DeFi ecosystems, including lending, stablecoins, decentralized exchanges (DEXs), insurance, Token protocols and more.
You can also invest your money in projects like decentralized exchanges (DEXs), which allow users to trade cryptocurrencies without the need for an intermediary. Many smartchain projects offer similar services as traditional banks but with more options for transparency and accountability. For example, if you want to borrow money from someone else or lend your assets out as collateral, Defi provides a way for anyone who wants to lend their crypto assets so that other people can borrow these assets at a fixed interest rate (usually called “the interest rate”). You may have heard of stablecoins before – these are cryptocurrencies whose value is tied directly to another asset such as gold or fiat currencies such as USD/EURO/GBP etc…
These are just some of the many examples of how DeFi is being used today
We hope you enjoyed learning about how smartchain cryptocurrencies are disrupting the traditional financial system. We’ve covered a lot of ground in this article. With so much going on in this space, it’s easy to get lost! But don’t worry, we’ll keep updating our blog with more information about DeFi as time goes by – stay tuned!