DeFi
DeFi
Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The system removes the control banks and institutions have on money, financial products, and financial services. Tokenization is the representation, in the form of a token, of a right, or physical or digital asset. The token is a sort of container that can hold, for example, a property right on a luxury good, a share in a company, or the fractional ownership of a property, etc.
Tokens and DeFi (Decentralized Finance)
With DeFi, you can do most of the things that banks support — earn interest, borrow, lend, buy insurance, trade derivatives, trade assets, and more — but it’s faster and doesn’t require paperwork or a third party. As with crypto generally, DeFi is global, peer-to-peer (meaning directly between two people, not routed through a centralized system), pseudonymous, and open to all.