{"id":273348,"date":"2021-06-13T10:11:00","date_gmt":"2021-06-13T07:11:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/defi-will-bring-global-revolution-to-the-traditional-finance-space\/"},"modified":"2021-06-13T10:11:00","modified_gmt":"2021-06-13T07:11:00","slug":"defi-will-bring-global-revolution-to-the-traditional-finance-space","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/defi-will-bring-global-revolution-to-the-traditional-finance-space\/","title":{"rendered":"# DeFi will bring global revolution to the traditional finance space"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3c16e4881e3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3c16e4881e3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-will-bring-global-revolution-to-the-traditional-finance-space\/#The_development_of_DeFi_in_subsequent_years\" >The development of DeFi in subsequent years<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-will-bring-global-revolution-to-the-traditional-finance-space\/#DeFi_regulations\" >DeFi regulations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-will-bring-global-revolution-to-the-traditional-finance-space\/#Why_will_DeFi_dominate_the_globe\" >Why will DeFi dominate the globe?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-will-bring-global-revolution-to-the-traditional-finance-space\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># DeFi will bring global revolution to the traditional finance space <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvOWQ3ODI4ODMtODFjMi00MzFiLThlMjctN2E2Nzc1MTM2YjI0LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>Decentralized finance came to life with the inception of Ethereum in 2013. However, it truly hit the ground running in 2016\u20132017 with the backing of Ethereum developers and some entrepreneurs and experts in the financial investment sphere. To get our facts right and clear all misconceptions, DeFi encapsulates a variety of financial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications in cryptocurrency or blockchain that are geared toward removing inter<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>ries between parties in financial transactions.\u00a0<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>The great unbanking: How DeFi is completing the job Bitcoin started<\/em><\/strong><\/p>\n<p>A large majority of DeFi applications are built on top of Ethereum. The first major, and the largest, DeFi application is MakerDAO, which was founded by Rune Christensen. Ethereum, to put it briefly, is an open-source platform that uses blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> to create and run decentralized digital applications.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_development_of_DeFi_in_subsequent_years\"><\/span>The development of DeFi in subsequent years<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As an exciting new concept, DeFi is the rapidly expanding ecosystem of blockchain-based financial products that look to replicate or expand on the capabilities of traditional finance institutions \u2014 like banks, payment processors, clearinghouses and more. DeFi is portrayed to be a solution to the problems faced by traditional banking and financial institutions and shows how it may eventually replace the old system, in real time. Regardless of the technology or platform used, DeFi systems are designed to do away with intermediaries between transacting parties.<\/p>\n<p>The volume of trading tokens and money locked in smart contracts in its ecosystem has been growing exponentially, proving that this concept is here to stay. As per DeBank, there is approximately $60.5 billion in net value currently <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/debank.com\/ranking\/locked_value\">locked<\/a> in DeFi.<\/p>\n<p>DeFi provides an accessible approach to manage financial transactions. As the name suggests, government jurisdictions and changes by centralized financial institutions do not apply to it. This eliminates the dependency on third parties, giving users complete control over their transactions and at the same time allowing them to remain anonymous since all transactions are carried out over smart contracts on the blockchain. Transactions and trading of cryptocurrencies can be executed from any location since it provides financial inclusivity.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"DeFi_regulations\"><\/span>DeFi regulations <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While there are no clear regulatory guidelines on DeFi-related topics, there are a few countries where certain isolated cases are taken into consideration by the country\u2019s governing bodies. Although DeFi may hold great promise, it also raises novel policy and regulatory considerations. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>FATF draft guidance targets DeFi with compliance<\/em><\/strong><\/p>\n<p>The United States\u2019 financial regulation assumes the presence of intermediaries, and it applies regulation to intermediaries as a way to regulate financial markets and related activities comprehensively. As a result, regulators and policymakers may find that DeFi can lead them into uncharted, yet-to-be-tested territory. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_will_DeFi_dominate_the_globe\"><\/span>Why will DeFi dominate the globe?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The decentralized finance sector has seen skyrocketing growth over the years. The ethos of the crypto and DeFi function is taking baby steps into conventional finance sectors vis-a-vis the saga involving <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>Stop and WallStreetBets. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>GameStop saga reveals legacy finance is rigged, and DeFi is the answer<\/em><\/strong><\/p>\n<p>At some point, the question to be asked is not whether DeFi will become a major factor in the global economy but rather how creatively it will be developed and to what extent it will emerge as a force for broad benefit.<\/p>\n<p>One of the keys to guiding DeFi in a beneficial direction will be integrating advanced decentralized artificial intelligence. So far, few DeFi projects have leveraged AI, but we may well see AI woven into the next burst of DeFi activity later in 2021 \u2014 and maybe even in a way that enables DeFi to push startup decentralized technical projects forward with much more velocity and purpose.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are no two ways about DeFi emerging as an important player in the financial firmament today. It is not about new toys for speculators to play with nor the provision of more sophisticated financial tools for those who prefer to keep their wealth outside the control of centralized authorities. DeFi has the potential to be much more than this, but the key to achieve truly profound influence will be the extension of DeFi beyond Bitcoin (BTC) and Ether (ETH) to the broader scope of lower-liquidity cryptocurrencies.<\/p>\n<p>Since 2020, DeFi has spawned a vast network of platforms and protocols that allow users to swap, trade, deposit, borrow and lend cryptocurrency for income and growth opportunities. This sort of cascading activity in the space has not been seen in traditional finance markets for decades.<\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Neeraj Khandelwal <\/strong>is the co-founder of CoinDCX, an Indian crypto exchange. Neeraj believes that crypto and blockchain can bring about a revolution in the traditional finance space. He aims to build products that make crypto accessible to and easy for global audiences. His areas of expertise lie in the crypto macro space, and he also has a keen eye for global crypto developments such as CBDCs and DeFi, among others. Neeraj holds a degree in electrical engineering from the prestigious Indian Institute of Technology Bombay.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/defi-will-bring-global-revolution-to-the-traditional-finance-space\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# DeFi will bring global revolution to the traditional finance space &#8221; Decentralized finance came to life with the inception of Ethereum in 2013. However, it truly hit the ground running in 2016\u20132017 with the backing of Ethereum developers and some entrepreneurs and experts in the financial investment sphere. To get our facts right and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":273349,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvOWQ3ODI4ODMtODFjMi00MzFiLThlMjctN2E2Nzc1MTM2YjI0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,74983,74868,74891,75238,4965],"class_list":["post-273348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-decentralization","tag-defi","tag-ethereum","tag-financial-services","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/273348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=273348"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/273348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/273349"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=273348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=273348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=273348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}