DeFi - Decentralized Finance

Let's figure out with you what DeFi is?

DeFi is Decentralized Finance.

DeFi is a network of applications and services for working with finances in a decentralized manner and in this case on decentralized public blockchains.

✍️ In simple words, DeFi is a short name for all other other alternative financial instruments running on a decentralized architecture.

What are the tasks and what is DeFi for?

1. An alternative to the banking sectors.

2. Replacement of existing financial products with decentralized ones.

3. Saving your time and commission on money transactions.

What applies to DeFi?

1. Decentralized crypto exchanges.

2. Futures protocols, etc.

With the help of DeFi applications, you can create decentralized stablecoins.

✍️ Historically, the authorities, central banks, etc. manage the issuance of currency and its regulation in circulation.

Centralized Finance

When we use fiat currencies, we thereby trust the government.

For example, we assume that:

1. The government represents us and our best interests

2. The government will not print much money overnight and thus will not create a huge level of inflation.

3. By keeping money on deposit, you trust the bank: allegedly it will securely store your savings and, accordingly, pay you interest.

✍️ But the sad truth of the current financial system is that this level of trust is not always justified.

Corruption, high inflation, fraud, exorbitant commissions are only part of the problems of the current financial system.

And although a government could print money to bring certain projects such as hospitals, schools and infrastructure into being almost overnight, this is not their objective, at least under a capitalist system and its financial premises.

Now ladies and gentlemen, imagine a global alternative to every financial instrument you use today (credit/deposit/insurance/transactions).

Imagine financial freedom

This alternative is fast becoming real for every one who has access to the Internet. It does not require trust in the central authorities, works transparently and open to all. DeFi is the future of financial freedom.

And the future of the cryptocurrency world has already come in 2022 and everything is just ahead for its most advanced blockchain - The Open Network - TON - and what is built on and around it.

You can learn more about the TON DeFi architecture here.

Questions or Concerns?

We'd like to welcome you into Telegram where you can find many channels and discussion groups where you can receive important updates and ask questions or just discuss your ideas and concerns around TON.

Here are some you can start with (and which contributed to this article on DeFi):

TON Central: @TonCentral

TON International: @InternationalTon

TON Newbie: @TonNewbie (Mostly Russian language)