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What is Decentralized Finance?

Apr 13, 2021

Decentralized Finance, or DeFi, is a blockchain sector that stems from the field of cryptocurrencies. Although it could hardly be considered a sector as such a little over a year ago, it already amounts to 43,000 million euros and its growth speed continues to increase.

DeFi eliminates intermediaries from financial services. Instead of traditional business services with company employees and infrastructure, its users use applications mainly based on Ethereum smart contracts. These are examples of services that you can find in the DeFi ecosystem:

- Decentralized cryptocurrency exchanges.
- Loan services.
- Investment services in financial derivatives.
- Betting shops.
- Lottery services (in which the money is recovered since the winner is the interest generated by the users' deposits).

The more companies benefit from using DeFi services, the more it will grow. In traditional finance, launching a derivatives service would require a very expensive technological investment. That is no longer the case, and the same applies to other areas. For reasons like this, it's not hard to picture a future in which decentralized finance occupies a legitimate space within regulated financial services.

Entra en la nueva economía tokenizada

Enter the new tokenized economy

Token City is the ultimate bridge to the tokenized economy (tEconomy), in which tokenized companies (tEnterprises) create their cryptoasset markets (tMarkets), open to global investors (tCitizens).

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