To understand DeFi coins, you first need to know what DeFi stands for. Defi (Decentralized Finance), or decentralized finance, aims to recreate the traditional financial system with less friction. Basically, DeFi is built by open-source platforms that are accessible to everyone and driven mostly by automated computer programs and less and less by centralized entities and people.
At the moment, the Defi market is trending and all people are shifting their investments in DeFi products to decentralize the digital economic system for good. In simple terms, it is a combination of legacy banking services and the latest decentralized technologies such as dApps (decentralized applications) and cryptocurrencies. From a technical perspective, it is a combination of all the products and services of decentralization, such as smart contracts, digital assets, protocols and applications.
While our traditional financial system runs on centralized infrastructure managed by central authorities, institutions, and intermediaries, most applications that call themselves “DeFi” are built on top of Ethereum, the world’s second largest cryptocurrency platform. This platform differentiates itself from the Bitcoin platform by being easier to use for building other decentralized applications beyond simple transactions. By implementing immutable smart contracts on Ethereum, DeFi developers can launch financial protocols and platforms that work exactly as programmed and are available to anyone with an Internet connection.
For example, suppose a user wants money to be sent to a friend on Tuesday, but wants to make the transfer when the temperature rises above 40 degrees Celsius in Adana, according to the weather forecast. Such rules can be written with a smart contract.
Decentralized finance: leverages the core principles of the Ethereum blockchain to increase financial security and transparency, unlock liquidity and growth opportunities, and support an integrated and standardized economic system.
Programmability: Highly programmable smart contracts automate execution and enable the creation of new financial instruments and digital assets.
Immutability: Enhances tamper-resistant data coordination, security and auditability across the decentralized architecture of a blockchain.
Interoperability: Ethereum’s interoperable software stack enables DeFi protocols and applications to be built in a way that integrates and complements each other. With DeFi, developers and product teams have the flexibility to build on existing protocols, customize interfaces and integrate third-party applications. For this reason, people often refer to DeFi protocols as “money legos”.
Transparency: On the public Ethereum blockchain, every transaction is broadcast to and verified by other users on the network (Note: Ethereum addresses are cryptographic keys that are supposedly anonymous). This level of transparency around transaction data not only allows for rich data analysis but also ensures that network activity is available to any user. Ethereum and the DeFi protocols that run on it are also built with open source code that anyone can view, audit, and build on.
Unlimited Unlike traditional finance, DeFi is defined by its open, unauthorized access. Anyone with a crypto wallet and an Internet connection can access DeFi applications built on Ethereum, regardless of their geography and usually without requiring a minimum amount of money.
DeFi Coins
Chainlink (LINK), AVAX, Basic Attention Token (BAT), which are also listed on our exchange, are DeFi coins that have gained a solid place in the market.
Chainlink (LINK)
Chainlink is a decentralized oracle system that validates real-world data used in blockchain-based smart contracts and bridges the gap between these smart contracts and non-real-world chain applications. Chainlink had a very strong start to 2020, partnering with companies in the cryptocurrency sector throughout the year. However, due to the effects of COVID-19 on global markets and the drop in the value of BTC, its price plummeted but has since continued to rise steadily. LINK, which was $ 1.8 in early 2020, increased its steady rise by 676% and traded at $ 14 levels towards the end of 2020. LINK, which is currently traded at $ 33, continues to be popular.
Avalanche (AVAX)
Avalanche does not have an owner. While Stephen Buttolph, Amani Moin, Kevin Sekniqi and Emin Gün Sür are the architects of this technology, Avalanche is not under the control of a single person or group. Although Avalanche does not work in a community as a management, it is a platform designed in such a way that everyone can have a say. This indicates a high degree of decentralization.
Basic Attention Token (BAT)
Basic Attention Token (BAT) was created by Mozilla and Firefox co-founder Brendan Eich to improve the security, fairness and efficiency of digital advertising through the use of blockchain technology. It is built on top of Ethereum.
