Decentralized finance (De-Fi)/10% beneficiary to tron fan club

Cheerful tidings to my fellow members of Tron Fan club.

How are we are faring,hope we are adapting to our different economies.in my last post I discussed on the risk and pitfalls associated with exchange traded funds (ETF), today I will be talking about different,which is "decentralized finance" I will highlight on a few key notable things we are to know about decentralized finance.

What is decentralized finance
Decentralized finance (De-Fi) is an emerging model for organizing and enabling crypto currency based transactions.decentralize core premise is that there is no centralized authority to detect or control operation.Decentralized finance makes use emerging technology in order to remove third parties and Other centralized institutions from financial transactions.decentralized finance has components such as crypto currencies, blockchain technology, and software which allow people to make financial transaction with one another.

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Decentralized Finance (DeFi) is a movement aimed at creating financial services and applications on blockchain platforms, allowing for peer-to-peer lending, borrowing, trading, and more without intermediaries like banks.

It offers higher levels of financial access by providing the possibility of a suite of financial products built on permissionless (in the sense that anyone is free to participate) block chains. it gives room for financial goods and services to be programmable on the blockchain and for participants to be able to make interactions with one other,in essence cutting off the middleman of financial institutions which traditionally provides the service of intermediation.In addition it also tends to provide alternative access to traditional financial products which includes;borrowing, lending, saving, exchange, insurance etc,it also provides a platform for new innovation and challenges for regulation.
It also makes room for the possibility of unique financial architecture to be included piecemeal as “money legos’’ to the financial ecosystem.

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How does it work
Decentralized finance uses of peer to peer financial network,it uses security protocol, software,hardware components and connectivity.This systems aids in eliminating intermediary like banks and other financial company.These organization tends to charge their customers and business which make use of their services, which is not a wrong thing to do in the current system, because it is only through this way they can make it work. While De-Fi uses blockchain technology as a means to reduce the need for all these intermediaries.DeFi applications are designed to communicate with a blockchain, enabling people make use of the funds in terms of making purchase, collection of loans,in term of gifts, trading, or any other proceedings that they want to without any involvement of third party.

Advantages of decentralized finance De-Fi

1) it enables any two parties to be able to negotiate interest rates directly and also be able to lend cryptocurrency or money through DeFi networks.
2) It is easy to Access it,in the sense that anyone with a good network can have access to it networks.
3) it does not rely on any centralized platforms,it stands on its own.

Examples of decentralized finance De-Fi
-uniswap
-MakerDAO
-Compound
-Aave

Conclusion
I hope this post has enlightened a bit in your understanding of decentralized finance,what do you think about decentralized finance.
Thanks for reading