Decentralised Finance

Decentralised finance or better known in abbreviated form, DeFi, is facing a rapid growth in the blockchain and cryptocurrency sector. According to DefiPrime, "DeFi is the movement that leverages decentralised networks to transform old financial products into trustless and transparent protocols that run without intermediaries". In other words, DeFi allows users to borrow, lend, and trade without having to rely on a central authority. These financial services are provided via Decentralised Applications, known as DApps, most of which are deployed on the Ethereum platform. 

Currently, DeFi has three core segments:

• Payment and clearance system 
• Accessibility 
• Centralisation and transparency 

DeFi provides numerous benefits, such as reduced operational costs and lower entry barriers for users. At the time of writing this, the entire DeFi market is worth more than 10 billions euros and has taken the cryptocurrency market by surprise, completely congesting the Ethereum network, where transaction fees are now totally out of control.

Please keep in mind that although this initiative is driving numerous new users to the blockchain, they might not be completely aware of the risks that lie in the price volatility or errors in the code of the different protocols that have not been properly audited.