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Defi decentralized development principle is what, many novices are not very clear about this, in order to help you solve this problem, the following editor will explain in detail for you, people with this need can come to learn, I hope you can gain something.

DeFi is the abbreviation of DecentralizedFinance, which translates to go to the central finance. Throughout the development of cryptocurrency, the evolution of cryptocurrency is accompanied by chaos and hope.

Difi is one of the most concerned topics in the field of blockchain in 2019. Zou Champion, executive director of Linktobit Asia-Pacific Research Institute, once said publicly: DeFi must be the future, because it is the best combination of security, privacy and efficiency. Development in the traditional financial system, financial services, including financing and investment, savings, credit, settlement, securities trading, commercial insurance and financial information consulting, are provided by centralized financial institutions for users.

Users who want to use these services must go through financial institutions and accept a variety of complex terms of financial institutions. With the help of the development of blockchain DeFi solves these problems faced by financial institutions through peer-to-peer finance and completes financial services to create financial assets and provide financial investment opportunities without any agency risks.

The decentralized nature of cryptocurrencies makes the free flow of wealth possible, while the emergence of Difi meets the need for a decentralized financial system, so that wealth can now be freely disposed of.

The French word for "Defi" means "challenge", and decentralized finance means as much to finance as it did when all great technologies were born, there must be challenges to overcome, but we still believe that Difi is one of the most promising development prospects of the blockchain.

The innovation of DeFi compared with CeFi is mainly reflected in three aspects:

Technological progress: the biggest difference of DeFi is that it is based on blockchain and smart contracts, but instead of using blockchain technology to support centralized financial services, it migrates products and models of traditional financial services to blockchain / smart contracts.

The technology of DeFi itself brings new value to the financial industry. For example, although the business model of mortgage lending also exists in traditional finance, the transparency of the capital pool in DeFi prevents the moral hazard held by centralized institutions and brings confidence to participants, so that the size of the market will expand and bring more liquidity. Asset size and liquidity are actually the essence of the financial industry, so DeFi's mortgage lending platform is not only a technical innovation, but also will bring great changes in the market level.

Product innovation: DeFi not only migrates products that already exist in CeFi, but also independently creates new products, such as intelligent contract insurance, which covers the security of smart contracts, thus protecting market participants from losses caused by hackers. In the stage of loss determination and claim settlement, this kind of insurance can be accurately executed according to the intelligent contract, and the insurance voucher (that is, the insurance policy) is token, so it can be transferred to form a secondary market of insurance. In this way, the insurance industry will also have the effect of scale expansion and liquidity enhancement due to the emergence of the secondary market. At the same time, the secondary market will also price the risk more accurately. Fundamentally affecting the insurance format / DeFi technology I37 system 6746 the development of OI49DeFi will not be a flash in the pan, it opens the first step in the landing of the public chain.

Model change: on the basis of technology and products, DeFi has achieved market, agreement, and asset levels. Like Lego bricks, this ecological model is difficult to achieve in CeFi, because the market of CeFi is basically independent of each other, and assets are relatively isolated. Later, we discuss the value created by DeFi from these three angles.

The landing product of the world through DeFi's decentralized blockchain. With the further improvement of the infrastructure, the landing of the public chain will become better and better, which will be divided into four stages:

The first step is for DeFi to open the public chain landing chapter; the second step is for DeFi to move towards Dao; the third step is to usher in the landing of Dapp when the basic performance reaches a certain level; and the fourth step is to fully land DAO.

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