DeFi is the movement within crypto that removes the control banks and institutions have on money, financial products, and financial services. It eliminates the middle-man and allows you to directly control your money. Think about it like this: instead of having to ask your parents to go out and buy you ice cream, you can walk out the door and get your own cream with the money you received from your weekly allowance.
Here are 3 main reasons why people like DeFi:
- Anyone can do it! A huge number of people in the world do not have access to the banking system and don’t have a place to store their money, pay for things online or invest. However, DeFi is permissionless, meaning anyone can access it- for example, with applications like Uniswap, all you need is access to an internet connection, a wallet, and some crypto.
- Anyone Can See It: In the traditional banking system, you trust what an institution tells you, but you don’t actually know how this is being determined. With DeFi, you are able to see everything that goes on, which you can trust will not change because it is implemented on the blockchain(!)
- You can control it all yourself! This means that you control your assets (for example: your money) while you participate, and you don’t need anyone else’s help to do it!