1776 is MDCCLXXVI – ANNUIT COEPTIS – Favors Undertakings
“Novus Ordo Seclorum”- NEW ORDER OF THE AGES
Is the Blockchain undertaking a favorable new currency system? Is Bitcoin changing the landscape?
DeFi is short for “decentralized finance” is a new term to most novice investors and entrepreneurs like you and me. It may describe (in a short, abbreviated way) the accounting for multiple transactions on the blockchain using “Smart Contracts”. Meaning that these transactions cannot be controlled by one centralized entity (like a government or Bank), but by multiple entities who track the records, like miners and verify if the transaction is an honest verified transaction.
This is important because a centralized entity can control and limit the speed of transactions as well as the complexity and even shut down the transaction. Like a bank being controlled by a government or centralized agency placing requirements and controls on money transfers. We know and expect a bank transfer of money to take 2-5 days because of the handling requirements placed on you and the banks involved. These transactions are controlled and can be interfered with.
Bitcoin (BTC) and Etherium (ETH) are the original DeFi applications. Each is a coin established by a blockchain contract out of reach of any lawyers, banks or governments. Networks of computers monitor the contracts for BTC and ETH transactions on the blockchain. They confirm the validity of the exchange in the transaction.
DeFi is predicted to be a reconstruct of the banking system for the entire world, so we may see major changes in money systems and business transaction soon happening. Many will be taken by surprise as financial systems turn to the Blockchain for controlling safety and speed in money changing hands. This new technology of money transactions is adding many new capabilities to business transactions, out of control of financial institutions and governments. Decentralized financial (DeFi) applications can make our financial systems more transparent, more resilient and less fragile than currently exist.