How does Decentralized Finance (DeFi) work?

1 of
Previous Next

Ad Details

  • Ad ID: 33521

  • Added: November 10, 2022

  • Location: India

  • State: UTTAR Pradesh

  • City: Noida

  • Views: 339

  • Website: Augmented Reality

Description

Decentralized finance uses the same blockchain technology used in cryptocurrencies. Blockchain is a secure and distributed ledger or database.

A Smart Contract is an Ethereum account that can hold funds and deposit/repurchase them based on predefined criteria. A smart contract in DeFi will replace the financial institution in the transaction. No one can modify the smart contract after it is live; it will still work as programmed.

For example, a allowance distribution contract could be coded to transfer funds from account Y to account Z only if account Y has the required amount.

Read More: https://vorphy.blogspot.com/2022/11/defi-decentralized-finance-vorphy.html