DeFi, or decentralized finance, is a movement that gives power back to the people. Domenic Carosa and Dan Schatt want to incentivize and help people with their new crypto platform Earnity. Defi permits users to control their finances without the need for a middleman. This can be done using blockchain technology and smart contracts.
Before learning more about decentralized finance, it would be best to have a little background of its counterpart — centralized finance. In this type of finance, banks and other traditional financial institutions manage and monitor people’s money. Centralized finance is riddled with third parties facilitating money movement among parties, with each transaction requiring fees. Every financial transaction in centralized finance requires fees and different waiting and processing times. Some financial services may be offline in other parts of the world.
With decentralized finance, intermediaries are eliminated as it allows merchants, businesses, and users to transact through peer-to-peer financial networks. DeFi uses blockchain technology in collecting and verifying data such as cryptocurrency payments tracing financial transactions back to its owners. The technology demonstrated the value of digital currencies more securely and much safer than fiat currencies.
DeFi is attractive to global users as it is permissionless, globalized, and accessible. Users worldwide are given access to funds and other digital assets all the time—sans penalties and fees. As Dan Schatt and Domenic Carosa of Earnity want buyers to have more freedom. This independence will help them position assets in innovative manners that may seem strange if centralized finance is involved. Before mass adoption, leaders, business owners, developers, and enthusiasts must educate others about DeFi. Financial technology offers options, benefits, and advantages over traditional finance that are hard to beat. Through platforms like Earnity, global users can learn more about the benefits of cryptocurrency, blockchain, and DeFi products.