The Economic Times on dated 22 Aug. 2023 released an article about Digital assets and mainstream adoption: Changing paradigm of personal finance.
Moreover, the concept of financial literacy has gained prominence, urging people to take charge of their economic well-being. As a result, the personal finance industry like DeFi Decentralised Finance systems has witnessed a revolution, placing a stronger emphasis on convenience, transparency, and user-centric solutions to cater to the demands of today’s lenders and borrowers.
The inception of digital assets traces its origins to 1998, marked by Nick Szabo’s visionary concept of ‘bit gold’ – a decentralized digital asset. Cut to 2023, cryptos are the most well-known digital assets with more than 20,000 of them in circulation.
What Is Decentralized Finance ( DeFi) and How Does It Work?
Decentralized finance ( DeFi) is an emerging model for organizing and enabling cryptocurrency-based transactions, exchanges and financial services. DeFi‘s core premise is that there is no centralized authority to dictate or control operations.
Decentralised Finance uses the blockchain technology that cryptocurrencies use. A blockchain is a distributed and secured database or ledger. Applications called dApps are used to handle transactions and run the blockchain.
Uses of DeFi :
Peer-to-peer (P2P) financial transactions are one of the core premises behind DeFi. A P2P DeFi transaction is where two parties agree to exchange cryptocurrency for goods or services without a third party involved.8
In DeFi, P2P can meet an individual’s loan needs, and an algorithm would match peers that agree on the lender’s terms, and a loan is issued. Payments from P2P are made via a decentralized application, or dApps, and follow the same process in the blockchain.
The dApps MetaMask the leading self-custodial wallet app which have 1cr + users, listed some of the best DeFi Dapps across the most popular ecosystems including Decentralized Lending and borrowing Finance dApps. Like Aave, Compound Finance on Ethereum Blockchain and venture Crypto Crowd Finance on BNB Blockchain and also Curve, DeFi Server, MakerDAO CDP, Nexus Mutual, PoolTogther, Pickle Finance, Token Sets, Yearn, Zapper, Zerion, pTokens etc. on Ethereum Blockchain.
Moreover, the concept of financial literacy has gained prominence, urging people to take charge of their economic well-being. As a result, the personal finance industry has witnessed a revolution, placing a stronger emphasis on convenience, transparency, and user-centric solutions to cater to the demands of today’s investors.
Increasing crypto investments over the years
Between 2018 and 2020, the worldwide user base of crypto experienced a substantial growth of almost 190%, and this growth trend accelerated even further in 2021, 2022 and 2023.
Crypto Assets Defi Decentralised Finance Ecosystem Is Getting A Boost On Social Media