How DeFi paved the way for financial inclusion
Decentralized financing (DeFi) is a form of blockchain-based financing that uses smart contracts on blockchains, the most popular of which are Ethereum-based ERC20 tokens, to provide traditional financial instruments rather than relying on central financial intermediaries like banks.
People can use decentralized financial platforms to lend or borrow money from others, trade cryptocurrencies, hedge against risk, and generate income from savings accounts.
This financial sector was born in 2009 when Bitcoin was created. Then ICOs, one of Ethereum’s first major use cases, gained popularity in 2017.
Since 2018, concepts such as “Liquidity Mining Pools” and “Automated Market Maker” have been introduced, which prompted many DeFi initiatives to develop new instruments such as loans, mortgages, loans and agriculture, among others.
On the flip side, while decentralized funding has grown in popularity in 2020 and Ethereum is the only blockchain that supports DeFi tools, many cheaper and faster alternatives have emerged since then (e.g. Binance Smart Chain). Today, these two blockchains are the most widely used networks to develop DeFi initiatives.
However, people around the world do not have access to this revolutionary technology in the amount we desire. That’s why Eidoo’s unattended wallet is the perfect way to get involved.