Technologies

Back in 2017, smart contracts for ICOs created changed the way teams raise  funds for their projects. For a long time, this way of raising funds remained the key advantage of the blockchain. It was the key, but not the only, advantage. Now a new revolution called decentralized finance begins.
 
DeFi means financial instruments in the form of services and apps developed on the blockchain. The main task of decentralized finance is to become an alternative to the banking sector and replace traditional technologies of the current financial system with open source protocols. That will open access to decentralized lending and new investment platforms to a large number of people and enable them to receive passive income from cryptocurrency assets, as well as to save on fees for remittances, loans and deposits.
 
The majority of the existing DeFi is built on Ethereum blockchain, and the number of new applications in decentralized finance is growing steadily.

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DeFi apps development

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By creating peering and decentralized apps on the DeFi platform, users can manage decentralized finance. They can interact with a powerful and coordinated ecosystem and manage their assets. New businesses can be accessed without investing an impressive amount of money. There is no particular difficulty in monitoring the cryptocurrency exchange rates and plt news. Application development allows buying and selling tokens quickly and cost-effectively.

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Key features and advantages of DeFi

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Decentralized finance (DeFi) has significant advantages:

• transparency - thanks to openness of the source code for audit;

• accessibility for everyone who has Internet access. Users can go to binance, use other platforms and perform transactions with top tokens;

• inclusiveness. Each user has direct access to decentralized finance by creating/using apps and services. DeFi has no-third party control and no account is required;

• ability to change the interface you did not like in the app;

• interoperability. A new DeFi app that allows earning on tokens can be created by a simple combination of other DeFi products.

Possible drawbacks of DeFi apps

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Despite the fact  the DeFi app industry is still at its nascent stage, there are already many benefits. The main thing is that any user can get a certain financial service, such as lending, while avoiding the bank. Decentralized lending protocols minimize the risks and provide 24/7 access to borrowed funds. New products are especially relevant for the borrowers from countries with expensive bank loans.

The procedure of developing one’s own digital assets and bringing those to the market has been significantly simplified and has become available to almost everyone. Processing of payments takes not several days but a couple of hours; interest rates and fees have become much lower. Also, the users have new ways to earn money on the cryptocurrency.

For developers, an obvious advantage is the ease of creating this kind of app due to transparency and open source code. In addition, projects of the DeFi sector can be developed on any platform that interacts with smart contracts.