Decentralized finance is popularly known as DeFi. DeFi is powered by the distributed blockchain. It has disrupted the financial system. Financial system is moving away from being a centralized system to peer-to-peer finance. DeFi’s expanded network of protocols and financial instruments including stablecoins, tokenized assets are being used by individuals, institutions and developers.
Most people who have an interest in blockchain have heard of Bitcoin, but the platform which has enabled Bitcoin to flourish remains unknown to many. The platform is actually an open-source blockchain platform, and its name is Ethereum. Developers use this platform to create many additional products and services.
Other blockchains are also seeing the rise of DeFi activities. One major complaint against DeFi is that it is not consumer-friendly. Often, this criticism stems from ignorance. Unlike popular belief, DeFi is not one entity having just one use case. It is made of different protocols. People around the world are using these protocols so that users can access DeFi without any difficulties.
Innovative DeFi Solutions
DeFi is actually a work in progress. Developers are using this platform to find innovative solutions that could simplify the process of last-stage financial transactions. Soon, you will hear a lot about how DeFi solutions have changed privacy, insurance and cash transfers.
Take a look at these innovative DeFi solutions:
Argent empowers people to have more control over their digital assets and identity. This self-custody wallet is easy to use, and all its applications are built on the blockchain. Aave and Uniswap are some of its well-known blockchain-enabled applications.
Argent’s users can access ‘guardians’ – friends or trusted devices.
It makes transactions more secure. Untrusted addresses could also be verified. It also provides solutions to recover your account.
Zumo makes cryptocurrency accessible via a safe and simple crypto wallet that allows you to buy, sell, store, send and receive cryptocurrencies, all within a secure and user-friendly smart wallet app.
With a range of innovative features that deliver borderless benefits of cryptocurrency, it’s never been so easy to step into the future of smart money.
Zumo is actually a decentralized financial platform. It combines the best of blockchain and crypto and works seamlessly with digital coins and traditional assets. This platform has features like non-custodial crypto wallets, borderless peer-to-peer payments, e-money.
Nexus Mutual uses the power of Ethereum so people can share risks together without the need for an insurance company. In the future, it plans to offer crypto wallet cover, as well as more standard products, like earthquake cover.
Very soon, it will emerge as an alternative platform to traditional insurance. What makes it different from insurance is the fact that the latter is more centralized where communities could not come together and share risk. This alternative platform will allow people to pool their funds and share risks.
Future of DeFi
The Decentralized Finance movement is promising. It goes beyond money and payments and touches every aspect of financial transactions. Money and payments have undergone many changes thanks to cryptocurrency.
Now is the turn of DeFi to go a step further. Insurance, savings, loans, trading, you name any type of financial services, DeFi has solutions for everything.
Over the last few years, DeFi protocols have witnessed remarkable growth and the movement is gaining moment to build the fintech champions of tomorrow.