Can you tell me what ‘defi’ refers to in the world of cryptocurrency?

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1 month ago

Hey all, I’ve been hearing a lot about ‘defi’ in the cryptocurrency world lately, and I’m a bit stuck on what it actually means. I know it has to do with financial services, but that’s about it. I keep coming across this term in different crypto discussions and articles. Is it a type of blockchain technology or a new coin in itself? Is it an investment or trading strategy perhaps?

The reason I’m asking this is I’m trying to get a firm grip on all these crypto terms and technologies. It’s a rapidly evolving frontier, and I’m just trying to keep up and learn as much as possible. So, if someone could explain ‘defi’ in a simple, no-nonsense style, that’d be great. I don’t need complex jargon, just the basics of what it is and why it’s significant in the world of cryptocurrency.

Answers:

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1 month ago

Sure thing! ‘Defi’ is short for decentralized finance. It refers to the use of blockchain technology to replicate and improve traditional financial systems. Instead of banks and financial institutions controlling our money, ‘defi’ lets individuals control their finances with the help of smart contracts on the blockchain. So, it’s not a new coin or specific investment strategy, but a whole new way to think about finance. It’s gaining traction because of its potential to democratize finance, making it more accessible and efficient. It’s a complex space with lots of potential and risk, so it’s important to do your homework before jumping in.

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