Decentralized Finance (Defi) and Cartesi

Decentralized finance is a trending technology that you should know about. A lot of money is locked up in Defi projects. Decentralized finance involves moving existing financial systems unto the blockchain network. With Defi, one can write projects that represent money like loans, collateralized debts. Defi will lead to the adoption of blockchain technology across the globe.
Decentralized finance is an ecosystem that is ripe for innovation. Defi will combine the traditional financial system and move them unto the blockchain network to decentralize them. Most of the decentralized finance products are non-custodial, that is one gets to be in charge of their security keys. Defi products leverage smart contracts in order to remove the 3rd party regulation that comes with centralized finance. Currently, most of the decentralized finance are done on Ethereum.

Defi allows you to borrow money without over-collateralizing. Usually, you need to use money to borrow money. Also, you can supply money with Defi. Hence, the two major things you can do with decentralized finance is to borrow money and supply money. Also, you can do margin trading on a non-custodial platform. This is the decentralized version of the leverage trading that happens on most websites. You can place both long and short trades straight from your metamask wallet.

Disintermediation with Defi

The major thing about decentralized finance is the removal of intermediaries. One can execute over the counter trades with smart contracts in the middle of the transactions instead of middlemen. Defi will remove the middle men from traditional banking systems like loans and replace them with a smart contract. The challenge with most decentralization is that it is not completely decentralized because there is still an organization behind one way or another developing the smart contracts. This brings in an element of centralization. It is not easy for the average individual to use most of the decentralized applications like the metamask. Metamask is required to access some web3 wallets. Decentralized finance will make funds available to less developed countries who have limitations on accessing the money they need or the amount of money they can earn per time. They can easily earn interest with some of the decentralized systems and receive a stable store of value. One challenge with Defi is the ease of converting one’s local currency to a Defi backed cryptocurrency. This might pose a challenge to those living in developing countries. Onboarding people to adopt Defi apps might be a challenge but it is not completely limiting. The great thing is that anyone from anywhere especially from developing countries can access loans without challenges or limitations from central authorities. Whereby accessing loans might come with tons of rules and regulations, Defi brings a way out of this challenge.

Cartesi In The Era Of Decentralized Finance

Decentralized looks absolutely awesome on paper with its disruption already underway. Cartesi presents an easy option for developers of these decentralized applications, removing the restrictive environment of the blockchain in the real world scenario. Cartesi provides a decentralized internet whereby tasks that demand intensive computation are done seamlessly off-chain. Users of the decentralized application can lend their idle computational power and this will be of major benefit to every task that is computationally intensive. Most of the applications that will manage and run decentralized finance will need the Linux special effects that Cartesi brings to the table.

Decentralized finance is the next level, hence Cartesi applications will be able to read and do complex calculations involving lots of data across multiple blockchains and external sources. Reproducing every advantageous feature of decentralized finance in the real world becomes very possible with Cartesi. Therefore, Cartesi offers interoperability between blockchains and the insurance markets where the lending and supply of money occurs. Cartesi will make decentralized finance efficient and scalable with reputable real-world solutions.

An average person has usability limitations with decentralized applications and this is impeding blockchain adoption. User experience is at the core of blockchain adoption. Cartesi will make finance 2.0 simple and intuitive for the average user in a developing country.

Conclusively on Defi and the Cartesi solution

Cartesi enables developers to leverage the existing knowledge to reinvent and innovate user-friendly solutions for the average individuals. Also, to bring a real-world application to decentralized finance.

Get connected with Cartesi

Website: https://cartesi.io
Twitter:https://twitter.com/cartesiproject
Telegram:https://t.me/cartesiproject
Discord:https://discordapp.com/invite/Pt2NrnS
GitHub: https://github.com/cartesi