Member-only story
Defining DeFi
Decentralized Finance, abbreviated as DeFi, has been a trending topic in many circles. Before heading to DeFi’s what, when, and how; I wanted to talk about Centralized Finance. Let us understand the whole landscape.
What is Centralized Finance?
Centralized Finance means centrally controlled. In this case, it refers to the financial institution that is the banks. While centralization began with the aim to stabilize the global financial markets and deemed necessary for cross-border businesses, many shortcomings have surfaced like forgery, fraud, and even questionable lending processes and so on. Even though the financial institutions are widespread, they still remain inaccessible to many.
What is Decentralized Finance?
This brings us to a decentralized system, which is comparatively new and built on open-source networks. DeFi aims to override limitations that we see in the traditional financial market by offering financial products and services on blockchain-enabled peer…
