Decentralized Finance (DeFi)

BlockworksSep 6, 2019 ⋅ 1 min read

Written by Jeff Kuan

Introduction

Decentralized finance (“DeFi”) is the concept of traditional financial instruments being built on decentralized architecture, with the goal of creating and providing widespread access to more transparent and resilient financial systems.

The current global banking system relies on financial institutions to serve as a trust layer. In DeFi, the trust layer is replaced by software and code. Programmable money provides users the ability to send money instantly, anywhere in the world, over the Internet.

DeFi innovations will continue to proliferate across a variety of industries, including but not limited to: banking, lending, wealth & asset management, capital markets and insurance, and with varying degrees of decentralization to create a world of network-based finance.

Suggested Reading

Why Everyone In Crypto Is Talking About DeFi by Jeff Kauflin

Decentralized Finance Is a Continuum by Sean Lippel

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Outline
  • Introduction
  • Suggested Reading