DeFi: Decentralized Finance Explained
The crypto industry wants to spend the financial giants. And they have a word for their revolution: “DeFi.”
Summer 2020 awakens a revolution in the field of cryptocurrency: decentralized finance.
After a series of crises and scandals in the traditional financial sector, the legion of computer programmers decided to plunge into the whirlpool, creating a new infrastructure that brought banks and other institutions out. out of the equation. Anyone with a computer and internet connection can launch their own software for things like lending, trading or insurance.
But that lower barrier to entry has opened up space for bad guys who want to scam people’s money. The industry’s rapid pace of development also leads to bugs and programming errors, making it an easy target for cyber-savvy criminals. In 2021, more than $12 billion was lost to thieves and scammers exploiting DeFi protocols.
Now, after the price of cryptocurrencies plummeted, and the demise of multi-billion dollar projects like TerraRegulatory and law enforcement agencies are paying more attention, focusing on hackers and vandals operating in the nascent industry.
Watch the video to learn more about DeFi, how it works, and what’s next for the industry as regulators look to clean it up.