Hello friends, I hope that we will always be healthy, blessed and also prosperous.
The global financial system that is heading to the height of its fame is DeFi. Yes Financial decentralization. So many efforts to socialize Defi to various circles. Likewise, we who live in Indonesia are getting to know Defi. In our shallow understanding, we see Defi as a breakthrough attempt to end limitations on financial access in conventional financial institutions such as banks.
Through this platform, I can get to know more than when I saw the news on television about the introduction of DeFi in Indonesia. I was very happy when I read @ayijufridar's post which was involved in socializing DeFi and then gave me better enlightenment.
Getting to know DeFi
As someone who is new to crypto, I feel that this blockchain has introduced the ins and outs of crypto well. I know a little and I still have to keep learning so that one day I can get more benefits.
I am acquainted with blockchain since 2018 through Steem. I was introduced to a platform that is not only a place to vent, but also gets added value economically. We get coins - although still a little - of course I have to appreciate. This is much different from other social media platforms which only provide opportunities for narcissism. there are even some bad cases such as selling personal data to third parties, or deleting content, being banned from the platform owner. This is of course very contrary to the principle of freedom of expression.
Through Blockchain, I started to learn about world finance that could be used as the future. Currently developing the term financial decentralization or DeFi. Through this platform I read articles written by share Steemian and opened up insights about DeFi.
From the various liations I have read, DeFi is defined as a financial mechanism that is open peer to peer and is different from conventional financial systems such as banking. DeFi stands for Decentralized Finance. This includes digital assets, protocols, smart contracts and dApps built on the blockchain
Advantages and challenges
As a financial system that knows no boundaries, time and other dimensions, DeFi could become a financial system in the future. If as a start, there is now a decentralized financial system, of course it will need further development so that it can be accepted by all groups.
From the various articles I have read, there are many advantages of DeFi, apart from of course there are still drawbacks or rather, it is said to be a challenge in the future. we can say that in Defi we having lot of advantages for investors like possible to access any one at any time,open to all ,all transactions done with in a second. With we having lot of issues to,for handling this need crypto knowledge and also keep extra amount for transactions.
Some of the advantages that we can see are as follows:
1. Global access
Different from the conventional financial system which is still limited by nationality, area and residence, DeFi is a major breakthrough so that everyone connected to the internet or Android has access to DeFi.
Through Defi, all transactions are not hampered by constraints on location, citizenship status, or distance in sending money. In the end, history will record a financial revolution with the birth of De Fi.
2. Lower shipping costs
Through DeFi, the cost of shipping between countries will be cut, thereby making it more effective in the financial system.
3. Not easily censored
In DeFi all transactions are immutable or irreversible. the government cannot interfere in this system. This will allow DeFi to develop without being noticed by other parties except the perpetrators.
4. Easy to use
Through Defi we will find it easier to use and get sources of funds or provide funds. Transactions will be much easier and faster because you no longer use third party services. People from distant parts of the world will have no problem with a smooth internet connection.
However, there are challenges that must be faced if you do not want to say it is an obstacle.
1. Money laundering
The nature of DeFi that conventional banks cannot interfere with, or even by the state, will make DeFi be used by people who want to run their money from one country. Criminals or non-criminals will transfer their fiat money by buying crypto and then transact it via DeFi.
2. High risk
Given that Defi is an asset in crypto form there are risks that must be considered. Often times there are changes that fluctuate so that we must be wise in choosing their use.
There are still regulations from the government that may make Defi still not accepted by the state. It could be that the government still sees the need to be careful about fluctuations in crypto values that can harm users.
Thus all my writing this time may useful for all of us.