And is it the hottest ticket in cryptocurrencies?
According to an article by Mr Jeremy Eng-Tuck Cheah, published in The Conversation, on 26 August 2020… it very well could be. Link here.
DeFi stands for Decentralised Finance and according to Mr Cheah, this financial industry has grown from US$2.1 million to US$6.9 billion in the past 3 years.
DeFi refers to and I quote…
… financial services using smart contracts, which are automated enforceable agreements that don’t need intermediaries like a bank or lawyer and use online blockchain technology instead.
DeFi smart contracts began with the Ethereum blockchain network and have now evolved into much, much more – encompassing a wide range of blockchains and decentralised applications (Dapps).
Lending, trading, cross-platform trading, derivatives, currency pegging and hedging are all being done within smart contracts; and, are but some of the use cases.
In a recent announcement by the Telos blockchain – they will be providing the infrastructure to tokenise a EURO 30 million property in Croatia. In partnership with Dapp development platform Katalyo and other stakeholders, they plan on tokenising both the property ownership and the rental revenue income. Another new example of DeFi in action. Article here.
In a YouTube broadcast last week (embed below) we discuss both the above articles and the financial opportunities that continue to arise in the blockchain and cryptocurrency industry.
Enjoy the video and remember the term – DeFi. For you will be hearing it more over the years to come.
What is Blockchain?
Check out one of our recent blogs on just this topic.