The evolution of DeFi in the digital age

Sponsored by JPMorgan Chase Decentralized finance, commonly known as DeFi, has emerged as a revolutionary force in the financial industry, redefining traditional business practices. Over the past few years, DeFi has witnessed rapid evolution, transforming how we transact, invest, and interact with financial services. Here, we explore what DeFi is, its evolution, and its pros and cons for the industry and personal finances. Related Stories What is DeFi? DeFi refers to a decentralized financial ecosystem built on blockchain technology. It aims to recreate and enhance traditional financial services without the need for intermediaries such as banks. Common uses include: Lending and Borrowing of Assets Decentralized Exchanges (DEX)/ Trading of Cryptocurrencies Yield Farming Decentralized Autonomous Organizations (DAOs) Synthetic Assets Insurance and Risk Management Tokenization of Assets Cross-Border Payments What are the goals of DeFi? The main objectives of DeFi are: Financial Inclusion. To provide financial services to underserved or excluded individuals, regardless of their geographic location or socio-economic status, without permission or approval from centralized entities such as banks. Decentralization. To eliminate the need for central authorities, such as banks or financial institutions, in financial transactions and services. Fee Elimination. To minimize or eliminate transaction fees, service charges, and other costs...