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What Is DeFi? Is It A Scam? New 2022 Beginner’s Guide To The Financial Ecosystem

by PRC Agency PR
What Is DeFi? Is It A Scam? New 2022 Beginner’s Guide To The Financial Ecosystem

If you haven’t been living under a rock these last few years, you’ve definitely heard about the latest trend in the financial market!

Decentralized Finance (DeFi) is an umbrella term for a part of the cryptocurrency universe that is geared towards new, internet-native financial systems. With the ecosystem growing at record rates, you may not know which is which, and whether the blockchain systems are a good investment.

Addressing this in their new report, Radix Beacon discusses the inherent benefits and risks of replacing traditional intermediaries and trust mechanics with software. 

Read the entire article at https://radixbeacon.com/if-defi-was-a-test-flight-new-financial-vehicle-mix-of-smart-contract-code-tokenomics-volatile-unpredictable-should-you-risk-investing-in-defi-in-2022

With their new report, you will understand what you’re getting into. As the name suggests, decentralized finance operates completely differently from traditional banking systems. Whereas the latter needs intermediaries, such as banks or stock exchanges, to validate transactions, the former replaces the middleman with intelligent software patterned within a blockchain.

These blockchains are meant to give power to the “layman”, as seen in the first whitepaper released by Bitcoin by Satoshi Nakamoto. The goal was to “decentralize” finance so that people could trade directly with one another using blockchain-based “smart contracts” doing the work of verifying transactions and making the entire process trustworthy (one of the most important aspects of financial trading).

In the new report, the author likens DeFi to the first test flight by Chuck Yeager in the fall of 1947. There was general disbelief and concern for the aerodynamics of the vehicle – with the public all but denouncing the flight as a hoax. While not a smooth flight, this flight, along with its succeeding test flights, propelled the way forward to a newer, more efficient airline system.

The same can be true for Defi. The industry is still only a few years old and is a radically different banking vehicle for the whole world. Mistakes and scams are an inevitable part of the process while the technology works out its hard edges.

It’s like asking a baby to run after only 5 months!  

The report ends with the statement that DeFi is a volatile mix of tokenomics, smart contracts, and money and can only be stress-tested in the real world – for both you and us.

We’re in for a wild ride, but what a ride it is! Go to https://radixbeacon.com/if-defi-was-a-test-flight-new-financial-vehicle-mix-of-smart-contract-code-tokenomics-volatile-unpredictable-should-you-risk-investing-in-defi-in-2022 so you can learn more.

Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.

 


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Created on May 10th 2022 08:05. Viewed 132 times.

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