SIMPLIFYING CRYPTO TERMS PART 1 DeFi We have been hearing the word DeFi but we really don't know ...SIMPLIFYING CRYPTO TERMS PART 1 DeFi We have been hearing the word DeFi but we really don't know ...
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SIMPLIFYING CRYPTO TERMS PART 1
DeFi
We have been hearing the word DeFi but we really don't know what it means. DeFi is an abbreviation of Decentralized Finance and its said to be a system whereby transactions are not controlled by a centralized system. its is trustless, automated by smart contracts and it is permissionless. DeFi is decentralized which simply means that instead of it to be controlled by one network, it is been distributed to various nodes. Bitcoin is said to be a P2P decentralized censorship resistance and store of value.
WHAT IS SO DIFFERENT ABOUT DEFI
The thing that makes DeFi different from other centralized finance is because they make your money work for you instead of just been a place you can just keep it and leave it idle. here are some reasons why DeFi is different;
(a) Earning interest
(b) Earning market maker fee (trading fees)
(c) Pooled rewards (governance token)
HOW DO YOU QUALIFY AN APP IS DEFI
(a) You been able to have 100% control of your assets
(b) You been able to interact with apps, smart contracts and also avoiding any human middleman
(c) You not necessary doing KYC
(d) No restrictions
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