Neeraj Khandelwal is the co-founder of CoinDCX, a leading Indian crypto investment and trading exchange. As a known face in the crypto industry, Neeraj has been instrumental in building some of the most revolutionary products in cryptocurrency trading, namely Futures, Margin, Lend, Staking, and others, among others, on the exchange. With a passion for technology and an inclination towards building technology that can be scaled into a profitable business, Neeraj aims to build products that make crypto accessible and easy to global audiences. He aims to solve problems by enhancing financial systems with the help of Blockchain and Crypto technology. He is also an alumni of IIT Bombay.
With more than a decade under its belt, the crypto ecosystem has not only proved the possibilities that the DeFi space holds, but also the way forward for Finance in general. With the mass adoption of the new asset class, news around the space has been a common topic for the past couple of years. As we move ahead and welcome blockchain and true decentralization in our daily lives, let us take a sit and understand how Neeraj has described the impact of DeFi.
Also Read: How does Defi Lending Work?
Key Takeaways
- DeFi is the future. Time and time again we have experienced the proof.
- DeFi has the potential to financially empower billions of people throughout the world, completely removing third parties from such financial transactions.
- A decentralized finance system offers various benefits in addition to online payments.
What is DeFi
Decentralized finance (DeFi) is an emerging technology that has gained a lot of traction in the global financial industry. It is based on secure distributed ledgers similar to those used by crypto and runs entirely on blockchain networks rather than through intermediaries. In short, DeFi is a big umbrella under which lies various financial applications that are pushed and geared by blockchain. The inspiration behind this technology draws its roots from the all-time famous and the now best-known crypto, Bitcoin.
DeFi was first introduced in 2015 through the launch of Ethereum – an open-source blockchain technology that enables digital transactions across the globe. Since then, it has evolved to become the most popular open global financial system. Through DeFi, any user with an internet connection can access financial services, especially transactions in crypto, from anywhere in the world.
Decentralized finance allows members to securely verify, execute, and record their own transactions. This has enabled many developers to use Ethereum’s DeFi apps to create and launch decentralized applications that run on a distributed computing system and build their own currency with it. As a result, the industry has witnessed a rise in the number of users opting for Ether.
Growth and the role of DeFi
DeFi has the potential to financially empower billions of people throughout the world. DeFi systems Not only do the DeFi systems offer traditional banking and financial services, but they also help the finance sector in continuing to expand the financial services available to network participants. The DeFi system is self-regulatory, thus, it allows you to keep track and control your own finances. This provides consumers ultimate control over their transactions through the use of smart contracts.
Due to its 24X7 accessibility, transactions and trading can be done from anywhere at any time.
DeFi blurs the line between average customers and affluent individuals or institutions, who have access to a wider range of financial products. A DeFi lending pool is open to anyone who wants to either lend or borrow money to maximize the efficiency of their capital. It is a concerted, “crowdsourced” attempt to put digital currency to work, providing users with financial incentives to keep crypto rather than speculate on price swings.
Additional Read: Crypto Taxation Guide Budget 2022
Benefits of DeFi
A decentralized finance system offers various benefits in addition to online payments. Money transfer is just one facet of the current centralized financial system; nevertheless, decentralized finance intends to offer aspects of the traditional financial system, — exchanges, loans, insurance, and savings accounts — to all, regardless of socio-economic background.
Future of DeFi
DeFi is still at the very elementary stage of its evolution, mostly because it is unregulated. Yet, with its rapid adoption in global financial systems, it will soon become a significant participant in our financial landscape. For the past couple of years, DeFi’s vast network has enabled users to swap, trade, deposit, borrow and lend crypto to maintain and grow their financial portfolios. DeFi’s true potential can be further harnessed when it eventually moves beyond Bitcoin and Ethereum towards adoption by lower-liquidity crypto assets.
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Download CoinDCX, most valuable bitcoin app in India
Written by:
Neeraj Khandelwal
co-founder CoinDCX
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