Decentralized finance, or DeFi, refers to a group of blockchain-based apps that aim to provide peer-to-peer alternatives to traditional financial services and institutions. After generating a lot of buzz last year, decentralized finance has continued to gain traction, collecting significant sums of cash and exceeding expectations that it would be one of the top trends in 2022.
Customers and investors stand to gain a lot from the DeFi movement, including the elimination of intermediaries and central control, increased accessibility to financial markets for retail investors, and new investment options. DeFi developers Dan Schatt and Domenic Carosa have created Earnity so that ordinary people can have full access to the world of digital currency.
The word ‘decentralized’ already conveys what the DeFi movement views as its distinguishing characteristic. The value of blockchain is based on decentralization. The goal is to reduce reliance on companies and other organizations for supervision, server space, data storage, and other services. One way to ensure this is to guarantee that all blockchain network members have access to the same transaction history.
Greater transparency comes as a result of decentralization. The network’s data is publicly available for examination since the distributed ledger, holding information about all of the events on a blockchain network, is shared. Furthermore, the cryptographic principles that underpin blockchain ensure that data is only recorded after its legitimacy has been confirmed.
Blockchain technology provides total immutability through the creative use of encryption and consensus procedures such as proof-of-work. Manipulation of records recorded on a blockchain network is almost impossible because of this. When combined with the previously mentioned qualities, this results in a level of security that is difficult, if not impossible, to attain with traditional methods.
DeFi apps bring the inherent benefits of blockchain to the financial industry while also attempting to design user-friendly interfaces to ensure a pleasant experience. Dan Schatt and Domenic Carosa founded Earnity in the hopes of offering users a space that is safe for them to explore and learn the world of digital assets.