WTF is DeFi? 🤔
Blockchain content writer. Working at Raise - The only marketplace that makes your money grow
We are living in a new world.
The last few years have been instrumental in positive changes in both the financial and technological sectors. In the last few months, we’ve seen a major surge in ‘DeFi services’ and we want to help you understand why products such as Raise
will help mold and revolutionize the way we think of money.
What even is ‘DeFi’? 😕
‘DeFi’ is just a shortened term for decentralized finance. In simpler terms, they are standard financial tools that foundations are built on a blockchain (normally via Ethereum) and can be built together like ‘Money Lego’.
Technology, in particular, the internet, has changed the way we all live today and this will be no different when applying the ideology towards money and finance.
Traditional ‘centralized’ finance is and has been controlled by banks and governments for many years. We trust them with our well-earned money and they will manage, regulate and invest based on economic factors.
We currently have little say as to what happens with our money and this is why ‘DeFi’ can provide a starting block to changing the world’s economy.
A financial system that’s open to everyone! 🔓
Decentralized finance aims to create a financial system that is open to everyone and lowers the trust and reliance that we currently have on central organizations.
Internet, blockchain and crypto provide the tools needed to collectively build and control the system without the interference of banks and governments.
The beauty of blockchain allows each and every single one of us to verify every transaction that occurs. Transparency and openness offer us all understanding dependant on what and how we want to use that information.
We can take charge! ⚡
Many DeFi applications are built on the Ethereum blockchain. This allows developers to program apps that can create, store and manage digital assets on the blockchain. This allows you to build complex apps without the need for a ‘middle man’.
It’s completely transparent. You can see everything by just being connected to the internet. Every single one of us has complete control over what is being and has been done!
It can change the world! 🌎
is a DeFi lending platform. Smart contracts are able to easily connect lenders and borrowers and allows a succinct way of lending without the interaction of a bank. It’s also completely open - a fully transparent way to either lend or borrow money without any complications or hindrances.
The opportunities that arise for lenders with Raise
is that they have the chance to offer opportunities to the underbanked or unbanked in developing countries. DeFi products can help it’s borrowers raise the funds and distribute them to support things such as education, business and even healthcare. This means that lenders on the platform have a real ability to change people’s lives and futures forever. Something that they currently are unable to do due to the centralization of the financial world.
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