The launch of Ethereum in 2015 as a smart contract development platform was the “AWS (Amazon Web Services) moment in crypto”, enabling developers to build more complex financial applications like DeFi on top of it.Ĭomparison of decentralised finance stack with centralised finance stack For the first time in history, we can send and receive money to anyone, anywhere in the world without a centralised intermediary. What if money is transferred and trades are executed and settled at the same rate?īitcoin challenged our assumptions about money. Imagine the rate at which information is exchanged across the world today with social media. What the internet did to information, decentralised finance will do to centralised finance
It is enabling developers to create new financial products such as decentralised banking, decentralised money markets and decentralised asset management firms.ĭeFi aims to be 10x better, faster and cheaper compared with today’s financial services.
#DEFI PULSE CODE#
The creation of financial products and services has always been a top-down process dominated by a few large financial institutions such as asset management firms, commercial banks and insurance companies.ĭeFi is a bottom-up innovation that takes the component of centralised finance and replaces human trust with math-based trust, paperwork with smart contracts, legal enforcement with cryptographic enforcement, and third party audit with open source code and public ledger. While many fintech startups have emerged in the last decade, they are built on top of existing financial rails.
0 kommentar(er)
