{"id":250721,"date":"2023-05-23T05:59:38","date_gmt":"2023-05-23T05:59:38","guid":{"rendered":"https:\/\/imarticus.org\/?p=250721"},"modified":"2024-04-02T04:29:03","modified_gmt":"2024-04-02T04:29:03","slug":"what-is-defi-how-is-defi-changing-the-landscape-of-finance","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/what-is-defi-how-is-defi-changing-the-landscape-of-finance\/","title":{"rendered":"What is DeFi? How is DeFi Changing the Landscape of Finance?"},"content":{"rendered":"

DeFi is powered by a plethora of <\/span>fintech courses<\/a><\/strong> that form the basis of learning courses focusing primarily on coding, designing, and using blockchain.\u00a0<\/span><\/p>\n

It is worth noting that in the third quarter of 2022, DeFi users\u2019 growth base amounted to <\/span>31%<\/span><\/a> compared to the second quarter of the same year.<\/span><\/p>\n

\"best<\/p>\n

While <\/span>cloud computing<\/span> may form a significant part of any curriculum, Decentralised Finance confirms the usage of the technology itself to develop a good portion of its system.\u00a0<\/span><\/p>\n

DeFi uses the same technology to empower its users with the latest services without the latter having to buy or maintain expensive and high-end hardware.<\/span><\/p>\n

So how does it work? And does DeFi have the technology to change the face of the current finance institutions? To know more about its workings, go through the outline before progressing.<\/span><\/p>\n

Overview of traditional financial systems<\/strong><\/h2>\n

Traditional financial systems rely on cash flow control and investments. Conventionally, banking institutions, including banks and stock exchanges, heavily regulate these systems.\u00a0<\/span><\/p>\n

As a result, users must comply with various rules and regulations by the state and national laws while using them.\u00a0<\/span><\/p>\n

The <\/span>role of Decentralised finance (DeFi)<\/span>, on the other hand, has a whole new financial mannerism to itself in the sense that it operates on blockchain.\u00a0<\/span><\/p>\n

Unlike traditional systems, DeFi relies on a direct and restricted money flow, allowing users to access services without the intervention of a third party. The current growth rate of decentralised institutions suggests a <\/span>42.6%<\/span> increase by 2030.\u00a0<\/span><\/p>\n

An advantage of having this system is a more transparent and secure cash flow and a variety of decentralised exchanges, typically including digital assets and stablecoins.<\/span><\/p>\n

How DeFi is revolutionising the financial sector<\/strong><\/h2>\n

DeFi works in a variety of ways among which these factors rank as prime.<\/span><\/p>\n