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DeFi is basically financial applications built on top of cryptocurrencies. Sometimes these financial applications (like exchanges, money markets, loan offerings
by warkdarrior 6y ago
DeFi is basically financial applications built on top of cryptocurrencies. Sometimes these financial applications (like exchanges, money markets, loan offerings, etc.) are decentralized.
- StavrosK 6y agoHmm, only sometimes? Doesn't the name imply otherwise?
- jamesonhodge 6y agoThere are varying levels of decentralization an application can take on, e.g. the back end (often Ethereum for financial applications), the front end (hosting on a peer-to-peer database like IPFS or Sia), and governance (by a DAO (decentralized autonomous organization) or some voting mechanism). Many DApps are founded with certain parts being decentralized and other parts centralized, and transition to a more/fully decentralized model.
- StavrosK 6y agoI see, thanks, that's helpful.