Defi & Web 3.0

What is DeFi?

DeFi is decentralized finance that is a rising financial technology that is based on safe and secure blockchain technology. With the help of DeFi, you can enjoy bank services in the crypto world. It enables you to lend, borrow, earn interest, trade assets, trade derivatives, buy the insurance and many more. The most advantageous feature is that you don’t have to go through hectic processes like the banks, no paperwork, faster, and eliminates the third party. 

DeFi resists the fees that banks and other organizations charge for their financial services. This method of finance is very beneficial for merchants, and businessmen. Peer-to-peer transactions in DeFi permit individuals to lend, borrow, and trade via security protocols such as hardware, software, and connectivity advancements. 

Benefits of DeFi

  • Easy to use– you don’t have to go through the tiresome process of opening an account. You can easily access it by creating a wallet. 
  • Doesn’t require details– usually, while lending money from any organization or bank you have to provide your personal details such as your name, address, phone number, or email address which is not essential in DeFi. 
  • Fast- interest rates and rewards are updated rapidly and can be notably sky-scraping than wall street. 
  • Flexible- transfer of assets is very easy and can be done without permission, with inexpensive fees and you don’t have to wait for longer transactions to finish. 
  • Transparent- involved parties can see the current and history of transactions. 

What is WEB 3.0?

As the name suggests it is the latest and more improved, and innovative version of WEB 1.0. The purpose of the WEB 3 is to make the internet smarter and more democratic which can not be controlled by any sort of central authority. The use of WEB 3.0 can transform the way we use the internet currently. Moreover, if it gets accepted globally the various uses of blockchain such as decentralized apps, smart contracts, etc will be more famous. 

The following are features of WEB 3.0

  • Artificial Intelligence
  • Ubiquity
  • 3D Graphics
  • Semantic Web

Attributes shared by DeFi and WEB 3.0 

Despite the difference between decentralized finance and blockchain or WEB 3.0, they share many similar qualities. The following are notable characteristics:

  • Decentralized-  allow users to execute direct peer-to-peer transactions without interference from any third party. On these online digital platforms, users can cut the middle man or third party and can trade willingly. Moreover, it cannot be controlled and operates independently. 
  • Permissionless and open- it means users don’t have to ask for permission from the centralized authority to use the network. An open public blockchain system (which WEB 3.0 represents) allows anyone to participate. 
  • Self-sufficient- users have power over their funds. Banks or financial service providers have no control over the funds which means the owner can borrow, lend or trade according to his/her choice. 
  • Unchangeable, cryptographically verifiable- Defi chains and blockchains cannot be tampered with, which means no one change hike the data. Moreover, records are irreversible, via variable cryptography. Information once saved is irreversible, tamper-proof, and unchangeable making it impossible to falsify records.