A decentralized finance platform runs in a pre-programmed manner on smart contracts. It represents the future of finance by providing high transparency, better security, and more trust to the users. Before DeFi emerged, the conventional financial system was highly complicated, prone to data theft, had poor liquidity, multiple intermediaries were involved in the system leading to an increase in the total costs, and was influenced heavily by various external factors affecting its overall performance.
Post the rise of DeFi, flash loans can be availed in a few seconds, the entire system is unhackable ensuring a safe experience for the users, automated provision of liquidity is present, the costs are less due to the presence of robust smart contracts, and it is highly immutable.
DeFi is permissionless, secure, eliminates the risks of intermediaries, and prevents chances of any fraud,
DeFi has become one of the safest financial systems as it uses a distributed ledger network making it unbreachable. Users can make use of private keys to have full control over their respective funds. Pseudonymous transactions can be facilitated.
Currently, DeFi tokens, DeFi smart contracts, DeFi DApps, DeFi wallets, and Decentralized exchanges are in high demand and witnessing tremendous growth.
Hence, make use of the favourable market conditions and build a decentralized finance platform soon.