So what the hell is DeFi? And why should you care? Let me give you the basics so you know what the cool kids are tinkering with in 2021.
Shouldn't take more than 2min to read.
DeFi = Decentralized Finance
You know how Tesla is selling direct to consumer? Bypassing traditional dealerships entirely... The same is happening with traditional banks and DeFi now.
DeFi is a new open financial system
Built with computer code. Whether you're Goldman Sachs or a poor kid in India, the system doesn't care.
Equal opportunities for all.
Banks Are For Trust
Wanna send $1000 to a factory in China? You're prob using some sort of "middleman" (Credit Card, bank transfer etc) DeFi gets rid of the middleman entirely.
The "Middleman" In DeFi
The stuff that banks are doing, for example
• bank accounts
• lending money
• credit checks etc
is now being done by a network of computers.
Instead of a bank overcharging you and taking 5 days to wire your money, you send money directly to the end user.
It costs you a fraction of what your bank would charge. And the money arrives within minutes.
That's it for right now. If you wanna learn more about DeFi, make sure to follow me on Twitter for more DeFi content @gabe_horvat