What is the meaning of DeFi?
DeFi is short for “decentralized finance”. It’s a huge part of the cryptocurrency world that aims to replace a common financial system that works through middlemen organizations (like banks) with a completely decentralized system using blockchain.
Let’s stop here for a little bit.
Difference between CeFi and DeFi
To send or receive money in a traditional financial system you need to use third-party services like banks, stock exchanges, etc.
They take a huge fee on every transaction, can block your transaction if they want to, and usually work slowly or not properly.
In DeFi, those middlemen services are replaced with a blockchain – an immutable ledger. Instead of financially connecting each other through banks or exchanges, people send funds directly to each other using smart contracts. That allows sending money or assets securely, anonymously, and fast without any issues, paperwork or third-party services.
You might think that DeFi is used only for sending money or assets, but it’s not true.
Funds sending is just a part of DeFi world. DeFi also includes things like money lending protocols, decentralized trading, staking, DAO, and many other amazing functions that are being developed every year.
At Tokonomo, we aim to create an ultimate DeFi ecosystem that will include all available and future DeFi products with a simplified UI and safe optimized smart contracts for web3 users. It will also include a user guide for newbies to ensure an easy and smooth entry into the DeFi world.
Being a new tech, DeFi grows rapidly and brings more and more users every year. So don’t wait and participate in the making of a new financial system.