DEFI DECENTRALIZED FINANCE - Very often in recent years we hear more and more often about defi, Decentralized Finance. But do we really know what is meant by this term and do we know all the tools it uses? Let’s find out together.
The defi, decentralized finance, is the set of services that offers a classic bank but in a decentralized way, therefore in the absence of a hierarchy or central control.
At the basis of the defi we find smart contracts, or smart contracts generated by an automated computer program, which automates an action to the occurrence of certain requirements. The goal of smart contract is to make it possible to make all types of transactions, mostly financial. Within the defi can take place an exchange of value, loans and remunerated deposits, data sharing and so on.
Decentralised finance makes it possible to eliminate intermediaries partially (by definition weak) or totally (by definition strong). The former relies on traditional peer-to-peer platforms, while the latter uses Distributed Ledger technologies. Distributed Ledger is a collection of archives that have the same data records, subject to maintenance and control through a complex of computer servers, called nodes.
The main purpose of decentralized finance is to create dapp (Decentralized Apps or decentralized applications) that target end users, offering financial products accessible to anyone, setting interest rates automatically on the basis of supply and demand. The only tool they need is a wallet containing crypto or tokens. These dapp have common characteristics that make them perfect for this type of products, among which we can remember:
Until now, the majority of Dapp built are located on the Ethereum Blockchain that in 2021 moved a volume of transactions greater than Visa, equal to 11.6 T of transactions against about 1OT of the payment giant.
Hedera has partnered with Neuron lnnovations, a London-based aviation technology company, to test the safe sharing of airspace by commercial and military drones. The UK has selected these drones that have performed a collection of millions of data points, taking advantage of Hedera’s public register consent service to "collect, store and order". Neuron sensors recorded the location and direction data of the drones, while Hedera’s consent service recorded the data collected by each drone on its decentralized public ledger. The main result that attracted interest is the demonstration of monitoring unmanned vehicles.
Palau is an island in the Pacific Ocean located about 500 km east of the Philippines, and became independent only in 1994. At present it does not have its own national currency, since it still uses US dollars, of which it was part until 1994 and with which it has maintained excellent relations. In November 2021 they announced the collaboration with Ripple and it is expected that within the first half of the year the national stablecoin will be launched, guaranteed by the government and collateralized in USD. As a result, the interest on the part of the state to exploit the ripple blockchain that allows a reduced power consumption and scalability at low cost.