Hello my dear Steemians and Art Fans,
Today I wanted to take part in Challenge 2: diving into DeFi.
First of all I wanted to tell it is noticeable at least on myself that the time really flies and everything around is changing so quickly. We still feel young in our soul and think that the world around is remains as it was. The only thing that reminds me on and off that we got older is the development in the world of world wide web.
What the hell is Defi? Probably majority of you learning this new world on Cryptos and blockchain with its variety of terminology which sometimes sounds very weird and once again I think what the hell they are talking about?
When I heard DeFi first time for me, being a doctor that abbreviation meant Defibrillator and an Emergency. It is funny how our brain immediately tries to find something familiar in our memory database in order to explain something new.
The same when recently it was a discussion under one of @xpilar’s post about spamming, farming, milking of Steem and on Steem. One of the new user asked:
Therefore, let’s just try to get explanation with simple words, like when you are trying to explain for example your mother.
The simple things .... DeFi is an abbreviation from decentralized finance. My school teacher would say:
If there is a decentralized finance, then it should be centralized too.
Normally we have bank where we are keep our money, get dividends, loan. But if you need a loan then you need to pass a credit check. When we came to UK, despite of having good paid, permanent job I received a simple debit card, like a student with no allowance of overdraft. When I wanted to get loan for my car I was told that because I have no credits in Uk they can’t give it.
Your bank is open only 5 days a week, if you need something from your account you need to get it done before 5pm, because then the bank is closed down
It does not belong to anyone but the same time it belongs to everyone. Only what you need is Internet access, that means just your smartphone and blockchain. In order for DeFi to function it needs Decentralized Application (DApps) and less of human intervention.
DeFi applications supposed to be open source, so that everyone could validate, audit the functionality, security and capabilities. They are transparent so everyone can see the transaction, the accounts are anonymous and appear only as numeric addresses.
DeFi functioning globally, unlike banks they anyone from any part of the world can get access to finance if he has a smartphone and Internet. That gives a huge opportunity to many developing countries to create their future themselves.
The system can find the most matching lender and borrower and you do not need any person between.
You all know that Art is the field that we dedicate a lot of time. But as you remember it is so easy to copy the Art and that is something that we have see so often. With Markerplace I learnt that this place allows to code your mostly digital Art, authentic and truly unique digital creation, signed and issued by the creator.
Every digital creation is issued as a unique digital edition. Using blockchain technology, a creator can ensure that only a limited number of authentic editions can ever be owned, ensuring scarcity and uniqueness of a digital creation.
That is something amazing for both creators and collectors.
Some of DeFi Dapps are used to make a stable coins, to give loans and to get an interest, exchange assets.
Such work is not done by people but are written in codes, those can run without any intervention of human.
The Dapps can be designed globally, no matter where you are, but in rare situation the local regulations can apply depending on the country and the function of Dapps
That gives a great opportunity to anyone with the skills of programming, because anyone can create Dapps and of course everyone is allowed to use. It is not like in our modern banking system that only bank employee can intervene. In DeFi we all have our own wallet and would be able to make any interaction directly.
Flexible user experience-the user is free to choose what he wants to use or if he wants he can create himself a program
Interoperable -the good thing it is possible to build up a new application into the existing, to create, modify and improve it.