Defi and the key role of the blockchain

cryptocurrencies

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Although smart contracts have existed for several years, it is only in the last period that their use has become widespread and concretely applicable. Smart contracts can have an automatic execution based also on data that comes from the outside, outside the blockchain. Some Cardano Blockchain in Defi gives the possibility to manage and sort this data.

Not only the exchange of value, data and contracts, in the world of decentralized finance one of the most interesting aspects is the possibility that some systems offer to be able to borrow and borrow cryptocurrencies or stable coins.

Some systems allow not only to obtain liquidity for one’s projects but also to be remunerated for having deposited sums which are then lent to those in need.

These exchanges are regulated in a decentralized way and validated if and only if certain conditions are met. For example, as a guarantee for the loan, the person who uses the service must demonstrate that he has sufficient capital locked in cryptocurrencies.

The origin of Defi introduced a new approach to finance.The concept of Decentralization is possible thanks to the internal innovations of the blockchain on which many Defi projects are based, which guarantee the possibility of having safe exchanges without intermediary institutions.

Furthermore, all transactions are written in the blocks of the blockchain which effectively becomes a virtual memory, a database within which it is possible to trace the various transactions while offering a certain level of transparency.There is also to be said about the fact that it can guarantee decentralization and horizontality, it is not always said.

In these systems based on blockchain technology, control supernodes may exist that play a prominent role in the overall management. With the new projects in Defi, financial control always remains decentralized, because the tendency towards the monopoly of nodes is fought and the consensus is distributed.

Conclusion

The sector is still in the primordial stages of its development and talking about future possibilities today is practically science fiction.  If we think that what we see today was inconceivable some time ago, we realize that we are at the beginning of a journey that will transform the balance of the world and perhaps the universe.

The evolution of the species passes through the development of technology which in turn follows an exponential path.  We think this is still the initial stage where the curve has not picked up yet.  We are living in a historical moment that offers great investment opportunities, a period full of opportunities to exploit.

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