March 29, 2024

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What is the thinking of Cryptocurrency?

Cryptocurrency

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 Decentralized finance is one of the greatest revolutions of the last century.  It may seem like a strong thought that ignores what led to the result we have today before everyone’s eyes.  However, it is more than good to remember that the finalization of many projects and many technologies, as in the case of Defi, is what could change the world.

 From a group of frontier technologies Cardano Blockchain and crypto, they have moved on to practical applications that were unimaginable only until some time before.  Technological applications that could change the world and our understanding of money exchanges, loans and even contracts.

 Revolution is still a long way off – but it could not be otherwise for an avant-garde movement like this – from everyday life.  But this must not scare, or suggest that decentralized finance will forever remain a niche movement.  Just as any countermeasures of the classic banking sector should not be frightened.  Because if we have learned anything from history, it is that in reality when such vastly superior technology arrives, others can only adapt.

 Decentralized finance is a new world, but one that has already brought home several results and has opened up a world of new possibilities.  Although several projects are already very useful – and also allow great profits – we believe that this sector is still in its infancy.  And that over time even nearby there will be as much interesting news.

The possibilities offered by decentralized finance are even more important for developers of decentralized apps, who can rely on systems that are already evolved today, which can provide data, liquidity and any other type of tokenizable asset automatically and at low cost.

 What is Decentralized Finance: operation and application areas

With  Decentralized Finance it means the ecosystem of financial services characterized by the reduction, or elimination, of the role of intermediaries and a decentralized delivery through enabling technologies such Blockchain and Distributed Ledger.

Intermediaries have always played a key role in the execution of financial transactions since organizations and individuals needed to rely on recognized authorities for value exchanges. Although technological evolution has led to a profound revision of the business models of financial institutions, this generally seemed to be limited to replacing a traditional intermediary with a tech one or establishing different forms of collaboration between incumbents and startups. However, the disruption already underway could become even deeper through the adoption of  Blockchain technologies.