0%
#Config#Stats

Why DeFi

May 14, 2021 2 min read
News Article Banner Image

Bitcoin the first decentralized internet money

Bitcoin is the first decentralized cryptocurrency and allows users to send value to each other in a peer to peer system. For peer to peer payment Bitcoin worked quite well but it has a limited smart contract system that can’t take care of loans, exchanging tokens, and other important services. To make up for Bitcoin’s limitations centralized services were put in place. Some have served their customers quite well (like OKEx) while others like Mount Gox caused customers to lose a lot of Bitcoin.

Ethereum and smart contracts

In 2013 Vitalik Buterin launched the Ethereum white paper and two years later launched the network. Ethereum is made for flexibility and running the sorts of smart contracts that Bitcoin can’t do. Over the course of several years Ethereum developed its code and eco system and gradually what we call DeFi emerged.

DeFi products and services

Once complicated smart contracts could be ran on blockchains it opened up a wide world of possibilities. This includes:

  • Decentralized exchanges that allow you trading of tokens without centralized services like Uniswap.

  • Lending services like Compound.

  • Stablecoins like Maker DAO

  • Wrapped coins that don’t natively exist on a blockchain like Wrapped Bitcoin.

  • And many other financial services

All of this allows cryptocurrency finance to take place with the security that decentralization provides.

Future DeFi

In the future, I suspect that DeFi will grow on other blockchains that can scale better than Ethereum. The OKEx Chain is already getting its system together to become a new decentralized trading platform that runs on its own blockchain. It will be much faster and more efficient than Ethereum which will provide a better trading experience for cryptocurrency users.

was originally published in OKEx Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

Popular news

How to Set Up and Use Trust Wallet for Binance Smart Chain
#Bitcoin#Bitcoins#Config+2 more tags

How to Set Up and Use Trust Wallet for Binance Smart Chain

Your Essential Guide To Binance Leveraged Tokens

Your Essential Guide To Binance Leveraged Tokens

How to Sell Your Bitcoin Into Cash on Binance (2021 Update)
#Subscriptions

How to Sell Your Bitcoin Into Cash on Binance (2021 Update)

What is Grid Trading? (A Crypto-Futures Guide)

What is Grid Trading? (A Crypto-Futures Guide)

Start trading with Cryptohopper for free!

Free to use - no credit card required

Let's get started
Cryptohopper appCryptohopper app

Disclaimer: Cryptohopper is not a regulated entity. Cryptocurrency bot trading involves substantial risks, and past performance is not indicative of future results. The profits shown in product screenshots are for illustrative purposes and may be exaggerated. Only engage in bot trading if you possess sufficient knowledge or seek guidance from a qualified financial advisor. Under no circumstances shall Cryptohopper accept any liability to any person or entity for (a) any loss or damage, in whole or in part, caused by, arising out of, or in connection with transactions involving our software or (b) any direct, indirect, special, consequential, or incidental damages. Please note that the content available on the Cryptohopper social trading platform is generated by members of the Cryptohopper community and does not constitute advice or recommendations from Cryptohopper or on its behalf. Profits shown on the Markteplace are not indicative of future results. By using Cryptohopper's services, you acknowledge and accept the inherent risks involved in cryptocurrency trading and agree to hold Cryptohopper harmless from any liabilities or losses incurred. It is essential to review and understand our Terms of Service and Risk Disclosure Policy before using our software or engaging in any trading activities. Please consult legal and financial professionals for personalized advice based on your specific circumstances.

©2017 - 2024 Copyright by Cryptohopper™ - All rights reserved.