Partner | What is DeFi and How is it Different From Traditional Finance? | The Quint

If you’ve ever spent some time doing research online on cryptocurrency, there’s a very high chance you’ve stumbled on the term ‘DeFi’. Don’t let the jargon scare you - DeFi simply stands for ‘Decentralized Finance’. Why decentralized? Because traditional finance is highly centralized, while DeFi, which is something that’s on the blockchain, doesn’t have any particular regulating authority - and hence the name.

In the video above we break down the jargon and and in very simple terms explain what DeFi means, especially in relation to the traditional financial system that we are used to.

If you’re interested in crypto trading, or cryptocurrency in general, follow our #CryptoTLDR campaign, in partnership with CoinSwitch Kuber, India’s leading crypto trading platform.

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[ronburgandy]

Great breakdown, but saying it is 100% secure is *very very* missleading.
In theory of course, but the reality is most defi projects are centralised blockchains (working towards decentralization) or simply not solid enough in coding to make this statement.

Keep up the great work, but please advise viewers of the risks and rewards for any asset class.

Imho, defi *currently* has excellent ROI for your lockup periods compared to any legacy bank, but that is also because if the code is wrong or a glitch occurs there's nothing to help you get your money back. Legacy banking in 70% of the world has governments insuring your deposits to a certain amount. For example 200k euro.

Defi will change banking forever but just like Bitcoin is going to change how we view money (not currency) it will take a decade at least.

Bitcoin only NOW has about 50% of people understanding the difference between fiat and money, and most still can't understand Bitcoin and why it's money not currency. But this will grow along with defi and NFTs (this will evolve into ownership title for houses, shares, cars and so on, making a government run database system slow and obsolete)

[mokesh]

How will this work if the value of crypto is so volatile? 🤔