281
edits
Difference between revisions of "Decentralized Finance"
m
no edit summary
Jimcrypted (talk | contribs) m |
Jimcrypted (talk | contribs) m |
||
| Line 1: | Line 1: | ||
Also known as DeFi is a collective term for financial products and services on [[public blockchains]] enabling anyone to use financial services anywhere. Unlike [[centralized finance]], also known as CeFi, DeFi is not dependent on centralized authorities for its operations but uses [[smart contracts]]. "Smart contracts" are programs running on the blockchain that can execute automatically without a third party when certain conditions are met. Smart contracts allow developers to build far more sophisticated functional applications that goes beyond sending and receiving [[Cryptocurrency|cryptocurrencies]]. These programs are called [[Decentralized Applications (DApps)|decentralized applications]] (DApps). | |||
== Differences between DeFi and CeFi == | == Differences between DeFi and CeFi == | ||
| Line 23: | Line 23: | ||
=== Derivatives Exchange === | === Derivatives Exchange === | ||
The financial derivatives market is a huge portion of the traditional finance world. It is still pretty small in DeFi, but many protocols are beginning to offer derivatives trading like perpetuals or options. | The financial derivatives market is a huge portion of the traditional finance world. It is still pretty small in DeFi, but many protocols are beginning to offer derivatives trading like perpetuals or options. | ||
==Sources:== | |||
https://fintechmagazine.com/financial-services-finserv/140-blockchain-and-crypto-words-ultimate-z-glossary | |||
[[Category:Glossary]] | [[Category:Glossary]] | ||