Explaining Decentralized Finance for a bitcoin market maker
DEFI is known as a movement that utilizes decentralized networks along with smart contracts for transforming every financial product to a safe, secure, and transparent protocol that runs without any form of intermediaries. In this video, Anton Golub, the CEO and Co-Founder of Flovtec explains in detail about what is the importance of Decentralized Finance for a bitcoin market maker in the blockchain world and why shall you need it.
[Transcript of Video]
Decentralized Finance of in short DeFi is a movement that leverages decentralized networks and smart contracts to transform all financial products into safe, transparent and secure protocols that run without any intermediaries.
With Decentralized Finance, any financial service that you might use today like savings, investing or hedging is accessible to everyone around the globe who has a smartphone and an internet connection. Now this is different from traditional finance where quite often we have non-transparencies, large fees, restrictions and intermediaries.
Decentralized Finance is enabled by smart contracts and smart contracts are actually super simple. So smart contracts are programs running on the blockchain that can automatically execute a task or a process once certain conditions are met. For instance, smart contracts can automatically pay out monthly dividend of a stock.
Now, not a lot of people know that decentralized finance has actually been around for some time. For instance, Melonport (now Enzyme Finance) is a decentralized finance project that started in 2016, that is building a decentralized fund management platform. That means, with Melonport (Enzeyme Finance), everyone around the globe can set up and manage investment strategies in a competitive, open, safe and secure way.
Even though decentralized finance is still quite young, billions worth of dollars have been flowing into this kind of projects. For instance, Uniswap is an automated market making protocol that provides prices on exchange of tokens on an Ethereum network, is now managing two billion worth of dollars of digital assets and today Uniswap is doing more volume on a daily basis than even some of the largest and oldest digital asset exchanges.
So, with that information, we can end on a very positive and enthusiastic note and be convinced that one day, this decentralized finance projects are going to be household names. For instance, like Robin Hood and everybody is going to use these services in an open, secure and safe way.
So that’s been all for today. I hope you enjoyed learning about decentralized finance and greetings from flovtec.
