Every player in crypto has heard the term Decentralized Finance or DeFi floating around. The umbrella term represents an ecosystem of projects, tokens, and platforms. In simple terms, decentralized finance is a system that makes financial products available on a public decentralized blockchain network. If you’re not familiar with blockchain, it’s an online public distributed ledger visible to everyone yet immutable in nature. Every crypto transaction is stored on a blockchain network as it keeps an irrefutable history of all the transactions.
DeFi makes financial products available on a public decentralized blockchain network. This means that DeFi brings banking features and products such as bank accounts, cards, and online transactions, into a decentralized environment powered by blockchain to ensure all the transaction history is safe, decentralized, and secure.
Financial Technology or FinTech is a relatively old concept, with the best example being online payment gateways such as PayPal. However, it has limited application in today’s world because centralized banks have complete control over the financial systems and restrict growth. DeFi, on the other hand, isn’t restrictive by nature and opens the door to new technology and possibilities. One of the most significant advantages of Defi is its ability to give users more control over their finances.
DeFi works using Decentralized applications (dApps) that replace traditional applications to give users complete control over their financial assets using personal wallets and trading services catered to users’ needs. It uses blockchain technology to disrupt centralized models and enable a new era of financial technology that can help anyone around the world without any restrictions.
Decentralized finance is far from its true potential yet and is just beginning to grow in popularity. As of March 2021, roughly $41 Billion was locked in DeFi contracts. This number clearly depicts the potential of the technology and the trust investors have in its future. Several DeFi projects have developed an incentivized version of DeFi to give the investors a way to create passive sources of income, such as Sphynx token, who have developed an all-in-one solution for trading, farming, staking, and investing needs.
An all-in-one solution to trading, staking, farming, and charting like Sphynx offers means users don’t have to switch between platforms, paying fees for every new platform and spending time creating accounts. The simple layout makes it easy and convenient for all crypto needs. Along with its current features, Sphynx plans on launching their NFT collection of 8,888 Sovereign Sphynx Council collectibles, which allow holders to earn dividends from the platform and royalties from sales on OpenSea. To further benefit users of the Sphynx Platform, they have partnered with CertiK International to audit the entire system, thus mitigating the risk of hacks.
While DeFi is still in its nascent stage, its possibilities are endless. DeFi is helping people gain control over their finances and creating a more trustworthy, reliable, and safer financial space. SphynxSwap has positioned itself as an innovative leader in the DeFi industry, solving the problems caused by a lack of safety and transparency, creating the first all-in-one trading solution in the crypto industry.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.