{"id":6285,"date":"2020-10-13T09:31:14","date_gmt":"2020-10-13T09:31:14","guid":{"rendered":"http:\/\/www.antiersolutions.com\/?p=6285"},"modified":"2020-10-13T09:31:14","modified_gmt":"2020-10-13T09:31:14","slug":"redefining-finance-with-defi","status":"publish","type":"post","link":"https:\/\/www.antiersolutions.com\/blogs\/redefining-finance-with-defi\/","title":{"rendered":"Redefining Finance with DeFi","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n

In the crypto space, 2020 has turned out to be the year of Decentralized Finance, also known as DeFi. Contrary to what many have been proclaiming, decentralized finance development<\/a><\/strong> hasn\u2019t come across as something that will overthrow the incumbent system. Rather, DeFi is complementing traditional finance, a welcome situation for enterprises as well as users.<\/p>\n\n\n\n

The technology has made the financial system more democratic, making operations even more flexible for enterprises and opening up more revenue sources for them. At the same time, the introduction of DeFi has resulted in enhanced efficiencies and immense cost-savings for users.<\/p>\n\n\n\n

Finance large enough to accommodate both DeFi and CeFi<\/strong><\/h4>\n\n\n\n

A few people argue DeFi will sound the death knell for Centralized Finance, also called CeFi. However, both ecosystems can co-exist and complement each other. Of course, there is a shift from CeFi to DeFi, but the space is large enough to accommodate both.<\/p>\n\n\n\n

DeFi has opened up immense possibilities in business. Keep a watch on the upcoming businesses in DeFi space and you will be astonished. The innovation and quality of the application will leave you astounded.<\/p>\n\n\n\n

Endless possibilities<\/strong><\/h4>\n\n\n\n

The possibilities are seemingly endless \u2013 asset management, DeFi coin development, Decentralized Autonomous Organizations (DAOs), decentralized exchanges, derivatives, insurance, stablecoins, staking, and more.<\/p>\n\n\n\n

Dig into these domains and you can find numerous business models. Analyze the tokenization of assets and you will find even an expensive art piece can be tokenized. Explore asset management tools and there will be crypto wallets with no centralized authority controlling them \u2013 users will have complete control over their assets. These wallets will show your holdings in Dollar, Pound, Yuan, or any other popular fiat currency, making it easier for traders and investors to work on their assets.<\/p>\n\n\n\n

Ethereum 2.0 \u2013 the power behind DeFi<\/strong><\/h4>\n\n\n\n

Ethereum 2.0 is serving as the core of decentralized finance development. Most DeFi applications are built on the Ethereum blockchain. As of October 6, 2020, DeFi Prime had 217 DeFi projects listed on it, out of which 205 were built on the Ethereum blockchain. DeFi Prime is a media outlet offering a curated list of DeFi products.<\/p>\n\n\n\n

The developers of Ethereum 2.0 had DeFi in mind even before its inception. Today, Ethereum has emerged as the foundation of the DeFi ecosystem. On the other hand, DeFi upstarts have helped Ethereum become and sustain as the world\u2019s second-largest blockchain.<\/p>\n\n\n\n

OGs of DeFi<\/strong><\/h4>\n\n\n\n

DeFi is at a nascent stage and even the OGs (old guys) aren\u2019t more than a few years old. The first few walkers, which also happen to be some of the largest companies in the arena, are Uniswap, MakerDAO, Compound, Aave, and dYdX. A dive into what these companies offer will give you an idea of how DeFi operates.<\/p>\n\n\n\n