DeFi and cryptocurrencies? Unclear steps and evolving systems

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The definition may include many margins, but in general, decentralized finance refers to any open ecosystem that allows the construction of decentralized financial instruments, applications, or services. A Coinbase article defines them as stepping up traditional cryptocurrencies, as they provide an alternative to any financial service offered today, including savings, loans, trading, insurance, custody and more.

These services are not necessarily controlled by a central company that profits from them, but are usually built on the basis of decentralized technology such as blockchain or Tangle, in which network participants unite without restrictions, making these cryptographic projects more democratic and innovative.

To provide this type of service, DeFi-based cryptography projects not only use the concept of blockchain, but combine it with smart contracts, decentralized applications (dApps) and other protocols and technologies.

The official passage according to our analysis is not clear.

In this way, the dream of obtaining a loan without intermediaries or of exchanging legal currencies with very low commissions becomes reality. We show you which cryptocurrencies have started implementing them below.

Ethereum: the father of DeFi projects.

Ethereum’s smart contracts and the ability to create new projects and tokens on its ecosystem have made ETH the undisputed father of DeFi projects.
In addition to having the industry’s 2nd largest cryptocurrency by market capitalization, the Ethereum ecosystem is home to nearly 20% of tokens across the sector and Ethereum is the “center” of over 1000 tokens, which are now listed on the cryptocurrency exchange. platforms. A Ledger post in late 2019 states that Ethereum hosts a total of over 200,000 ERC20 tokens.
Most of them embrace the programmatic potential of Ethereum smart contracts to create decentralized applications for smart finance…….

 

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