#cryptodisruption

[cryptoandbitcoinforall]

Diving into decentralized finance (DeFi): Revolutionizing traditional banking

With the introduction of decentralized finance (DeFi), the financial environment has experienced tremendous upheaval recently. DeFi is an innovative movement that uses blockchain technology to provide a rival to conventional financial institutions. DeFi creates new avenues for financial inclusion, transparency, and innovation by getting rid of middlemen and centralized agencies. This article delves deep into the realm of DeFi, examining its fundamental tenets, advantages, and potential to transform conventional banking as we currently know it.

I. Understanding DeFi

 A collection of financial services and apps created on blockchain networks like Ethereum is referred to as "decentralized finance," or "DeFi." DeFi solutions work without centralized management, in contrast to traditional financial systems, allowing peer-to-peer exchanges and interactions. Lending, borrowing, trading, and yield cultivation are just a few of the many financial operations that can be automated thanks to smart contracts, which are self-executing sections of code. Users now have more freedom and control over their money because of this.

Decentralized exchanges (DEX), lending platforms, stablecoins, asset management protocols, and more fall under the umbrella of DeFi. Each of these applications is made to function without the use of middlemen, relying instead on the security and transparency of the blockchain to uphold participant confidence.

II. Fundamentals of DeFi

a. Decentralization

Decentralized networks, on which DeFi systems are built, ensure that no one organization has complete control over the system. This lessens the possibility of censorship or manipulation. Greater resilience is another benefit of decentralization because there is no one point of failure.

b. Open source

The majority of DeFi protocols allow anybody to view the source code, suggest changes, or create new applications, encouraging community creativity. The DeFi ecosystem benefits from openness, trust, and cooperation fostered by this open strategy.

c. Interoperability

DeFi projects can communicate with one another using smart contracts, resulting in a seamless environment that is interconnected. Users can access a variety of DeFi services thanks to this interoperability without switching platforms or juggling various credentials.

d. Transparency

Since blockchain transactions are visible and openly verifiable, they foster user confidence and lower the likelihood of fraud. Each transaction can be examined by participants to make sure the protocol is operating as planned.

III. Advantages of DeFi:

a. Financial inclusion

DeFi eliminates the requirement for traditional banking infrastructure, allowing individuals with restricted bank access to engage in a range of financial activities with just a smartphone and an Internet connection. DeFi can be a lifeline for consumers looking for basic financial services in places where banking services are expensive or infrequent.

b. Lower barriers

DeFi platforms typically feature reduced entry barriers, making it possible for anybody to lend, borrow, trade, or invest without having to go through a lengthy approval process. Individuals may manage their finances and take part in the global economy because of this inclusion.

c. Global accessibility

DeFi runs on a network with no physical borders, allowing users to conduct financial transactions from anywhere in the world. This accessibility on a global scale encourages new levels of financial inclusion and cooperation.

d. Enhanced security

Compared to conventional banking systems, DeFi lowers the danger of fraud and piracy due to cryptographic security mechanisms used in blockchain technology. Smart contracts eliminate human mistakes and potential manipulation by running exactly as intended.

e. Opportunities for earning returns

Users can engage in profitable activities like yield farming and liquidity provision, which frequently provide returns that are larger than those of conventional savings accounts. The open and competitive nature of DeFi may inspire new strategies for making passive income.

IV. Challenges and risks

a. Security vulnerabilities

Although blockchain technology is thought to be secure, smart contract faults and vulnerabilities have in the past resulted in large financial losses. In-depth security audits and assessments must be performed on DeFi protocols to reduce risks and safeguard user payments.

b. Regulation and compliance

 Because DeFi is decentralized, it can be difficult to comply with regulations, which could cause problems with conventional financial systems. DeFi's long-term success depends on finding a compromise between regulatory compliance and upholding its fundamental beliefs.

c. Scalability

Due to the present constraints of blockchain networks, DeFi platforms may not be as effective or scalable, which could result in increased transaction costs during busy times. To solve these problems, Layer 2 scaling and advancements in blockchain technology are being investigated.

d. User experience

For non-technical users, DeFi platforms might be daunting and difficult. For adoption to become widespread, user experience must be enhanced and user interfaces must be made more approachable.

V. Traditional banking and DeFi

a. Disintermediation

By doing away with middlemen like banks and financial organizations, DeFi lowers costs and boosts the effectiveness of financial transactions. Smart contracts allow for direct user interaction, doing away with middlemen and their related expenses.

b. Cross-border payments:

 Due to DeFi's borderless nature, cross-border payments and fund transfers are simple and quick without the use of intermediaries or currency changes. This can considerably lower the price and duration of international transfers.

c. Financial services access

DeFi can give underbanked and unbanked populations access to financial services, promoting greater financial inclusion. People who live in remote locations can use DeFi applications because all they need is an internet connection and a digital wallet.

d. Finance that can be programmed

DeFi's programmability enables the development of high-end financial goods and services. Smart contracts enable users to customize financial strategies, automate investment choices, and carry out complicated transactions.

CONCLUSION

Decentralized finance (DeFi) is a force for disruption in the financial sector, upending conventional banking practices and providing a viable future alternative. The way individuals interact with money, assets, and financial services is going to undergo a radical change as decentralized finance advances and gains popularity.

To fully utilize DeFi's potential to improve traditional banking, it is crucial to find a balance between innovation and security while navigating the regulatory environment. DeFi can transform the global financial environment and provide people with unmatched access to a wide range of financial opportunities by encouraging financial inclusion, transparency, and autonomy. Collaboration between the crypto community, authorities, and established financial institutions will be essential to building a peaceful and successful future for decentralized finance as we advance in the field of DeFi.

If you're interested in learning more, you can check out my recommended “Course of Crypto and Bitcoin”

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[quicklycybermoon-blog]

We Already See The Disruptive Power Of Cryptocurrencies

When speaking of digital assets non-crypto people often say either that cryptos have no real use or that they benefit only criminals. In both cases, skeptics are wrong because cryptocurrencies are already in our daily routine for better or worse. Therefore, the next time someone asks you why digital tokens matter you can answer by simply outlining the following real-life use cases: Donations Some might say that cryptocurrency traders are selfish on their hunt for crypto wealth but hey it turns out that the average crypto trader is more than willing to donate some his fortune. There are various charity organizations that receive donations in the form of cryptocurrencies. The Pineapple Fund and eatBCH are the first that come to my mind. The first raised and donated over $55 million in 2017 alone, while the latter is currently helping the Venezuelan families struggling with hunger. The coolest thing about cryptos is that you can help without even having a single token or wallet. Some charity campaigns ask donors to mine cryptocurrencies and the results are outstanding. UNICEF and GNation had put these tactics into practice. E-commerce Let’s admit it, it is extremely convenient to conduct microtransactions with digital tokens. Things like subscriptions and small-scale purchases are no longer a pain. Moreover, there are many online stores that already accept crypto payments. The blockchain technology connects directly buyers to sellers, thus omitting any traditional mediators such as banks. Online platforms such as Newegg, OpenBazaar, Wordpress, and Overstock are all integrating cryptocurrency payments. Of course, the black market is a place where cryptocurrencies are quite popular as well. The problem here is that just a few of the tokens offer anonymity, meaning you cannot trust every cryptocurrency for illegal purchases. Finance This might sound counterintuitive to some of you but in fact, cryptocurrencies are getting traction even in the highly conservative world of traditional banks. While this might not be by everyone’s taste it’s true – the gap between fintech startups and banks is not that large anymore. Banks are realizing that blockchain technologies can be their friends and are tirelessly exploring their applications and nature. To make it clearer, household names such as Mastercard, Bank of America, Saudi Arabia’s Central Bank, Goldman Sachs, JP Morgan, MoneyGram, Western Union, and American Express are all dealing with cryptocurrencies in one way or another. Read the full article

[kalilinux4u]

RT @Jessica_Moos: Excited for the rollout of #CryptoDisrupted podcast on @hackernoon! Congrats @trentlapinski! I have to say Trent's shows are one of the realist in the #cryptopodcast sphere. https://t.co/4eAyDbkntf (via Twitter http://twitter.com/hackernoon/status/1040464163624017920)

[jacobhinkley]

New Ethereum Wallet Becomes Available on Wirex

The UK-based digital money platform Wirex has announced the expansion of its cryptocurrency wallet portfolio with a new Ethereum wallet. The addition of the new wallet, which was first announced this past June, means Wirex can now support four coins – Bitcoin, Ethereum, XRP, and Litecoin.

💠 Wirex #ETH Wallets have landed!💠 The new Wirex #Ethereum wallet allows you to buy, sell and store #Ether (ETH). Everything you need to know, we've covered: https://t.co/5F18HrqPcU#WelcomeToTheWirexFamily #ToEthereumAndBeyond pic.twitter.com/OsKbB84cDw

— Wirex (@wirexapp) September 4, 2018

The news follows recent announcement by Wirex that it is expanding its cryptocurrency services with a Ripple wallet. Thus, the company became the first payment platform to allow users exchange their XRP and spend it online like the fiat currency. As of today, the platform already has over 900,000 users in more than 130 countries and is a holder of an e-money license granted by the United Kingdom.

According to Pavel Matveev, the founder of Wirex, the decision to integrate ethereum into the platform was an easy one. “Ethereum represents the second most valuable cryptocurrency after Bitcoin – and therefore the world’s biggest altcoin – making the development of the Ethereum Wallet a priority for Wirex,” he said in a press-release.

With a new offering, Wirex users will be able to buy, sell, and deposit ETH, as well as convert it to fiat currency, including USD, EUR, and GBP, and spend online via the Wirex Payment Card. All Ethereum wallets can also be linked to physical and virtual VISA debit cards.

“We are pleased that we can now offer this popular crypto, but our product growth does not stop here,” Matveev claimed. “We have some interesting new services in the pipeline and our recently earned FCA e-money licence has opened the doors for even more products and locations in the near future.”

Created by a 24-year-old programmer, Vitalik Buterin, Ethereum has turned into the second largest digital currency after bitcoin. Vitalik issued the whitepaper in 2013 and suggested to build a blockchain-based platform that runs smart contracts. A smart contract is a self-executing contract stored on the blockchain that allows developers to create decentralized applications. Unlike bitcoin blockchain, which enables users only to conduct transactions, Ethereum allows users to execute agreements and run funding campaigns for new startups.

“Ethereum stands out from other cryptocurrencies because whilst it is a digital currency, it has an entirely different protocol to Bitcoin. Besides using Ether to transfer money. It allows you to execute smart contracts. These smart contracts will have the effect of eventually eliminating the middleman from contracts, resulting in savings for the consumer,” said Wirex co-founder, Dimitry Lazarichev.

To mark the launch of the new wallet, Wirex, together with CryptoDisrupt, plans to donate 20 ETH to a charity selected by the online crypto community. The nominations can be made until September 11, while the winner will be revealed on September 14.

The post New Ethereum Wallet Becomes Available on Wirex appeared first on CoinSpeaker.

New Ethereum Wallet Becomes Available on Wirex published first on https://medium.com/@smartoptions

[bestblockchainby-blog]

Крупнейший в мире автомобильный аукцион начнёт принимать платежи в криптовалютах

Частный британский аукционный дом «Бонхамс» (Bonhams), один из старейших и крупнейших в мире аукционных домов, специализирующийся на изобразительном искусстве, антиквариате и роскошных коллекционных автомобилях, намерен начать принимать платежи в криптовалютах. Новость сообщило издание Cryptodisrupt. В этом году впервые покупатели получат возможность приобрести сверх-дорогие Ламборгини, Феррари, Бентли и другие элитные авто с шестизначными ценами за криптовалюты. Главным преимуществом такого платежа служит скорость транзакций. Покупка элитных автомобилей за доллары или иные валюты может растянуться на недели и даже месяцы. По контрасту, пересылка платежей в криптовалютах занимает минуты. В интервью изданию Forbes Элизабет Уайт, глава компании по продаже предметов искусства и предметов роскоши White Company, позволяющей клиентам платить в криптовалютах, объяснила, что, когда покупатель приобретает автомобиль за биткоины или их аналоги, то средства электронным образом пересылаются в криптовалютный кошелёк, откуда затем доллары поступают на счёт Bonhams. Процесс занимает тридцать минут. Уайт заметила: Огромное преимущество криптовалюты состоит в том, что это глобальная валюта, прекрасно подходящая для аукционов, которыми пользуются покупатели со всего света.” На данный момент White Company продала так более 30 Ламборгини и Феррари ценой в $4 млн. Bonhams – не единственный аукционный дом, принимающий криптовалютные платежи. Они получают всё более широкое распространение в этом бизнесе. Так, в июне этого года часть работы культового американского художника Энди Уорхола “Обратная последовательность 14 маленьких электрических стульев” была выставлена на аукционе на блокчейн-платформе изящных искусств Maecenas. Аукцион позволил участникам торгов приобрести творение Уорхола либо за биткоины, либо за фирменные токены Maecenas ART – их модель даёт возможность в режиме реального времени отслеживать процесс покупки и продажи. Ранее в этом месяце криптовалютная выставка произведений искусства открылась в галерее искусств в Лондоне. House of Fine Art совершил революционный шаг, дав клиентам возможность приобретать предметы искусства за криптовалюты. На фоне миллионеров, покупающих за криптовалюты дорогие авто и картины Энди Уорхола, и аукционных домов и галерей искусств, признающих преимущества крипто-платежей, цифровые валюты могут поменять репутацию избранных денег преступников на репутацию валюты для баснословно богатых людей. Read the full article

[jacobhinkley]

Ethereum Lands on Wirex Platform

Hot on the heels of their successful XRP launch, Wirex has delighted its 1.8 million clients once again with the addition of an Ethereum Wallet to its suite of services. “Ethereum is the second highest-value cryptocurrency after Bitcoin and its inclusion on our platform marks an important step for Wirex users”, says Pavel Matveev, co-founder.

Wirex facilitates the seamless exchange of Ethereum with other cryptocurrencies, as well as allowing users to buy, sell and spend both fiat and cryptos instantly via the Wirex Visa Payment card.*

Ethereum – Smarter than Your Average Crypto

Dmitry Lazarichev, co-founder of Wirex, says,

“Ethereum stands out from other cryptocurrencies because whilst it is a digital currency, it has an entirely different protocol to Bitcoin. Besides using Ether to transfer money, it allows you to execute smart contracts. These smart contracts will have the effect of eventually eliminating the middle man from contracts, resulting in savings for the consumer”.

The utility underpinning Ethereum is what makes it so appealing to crypto enthusiasts. The addition of the Ethereum wallet provides Wirex users with access to a stable and innovative altcoin.

Ethereum launched in 2014 with an $18 million ICO. Its creator, Russian-Canadian Vitalik Buterin, was a young programmer and prolific writer on the topic of cryptocurrencies and blockchain. He was paid in BTC – between three to five BTC per article – and funded his projects with these earnings.

In 2012, Buterin co-founded Bitcoin Magazine with fellow crypto pioneer Mihai Alisie. Buterin believed that “decentralized technologies [were] a natural fit for many kinds of applications that had a central controller,” but felt that the Bitcoin blockchain was limited. He studied the architecture of existing blockchain applications and conceived the idea for Ethereum.

The Ethereum white paper was released in late 2013 and proposed “a decentralised platform that runs smart contracts”. It boasted the functionality of the Bitcoin blockchain but with wider capabilities. Ethereum represents the second generation of blockchain technology. Recognising the vulnerabilities of storing information online, it has produced solutions that have captivated both investors and institutions.

The popularity of Ethereum has been driven by the support of large corporates who have seen the value of the smart contract protocol. A group called the Enterprise Ethereum Alliance (EEA) was founded last year with the aim of connecting large companies to technology vendors in order to facilitate projects using the blockchain.

The list of members is impressive, including a significant number of Fortune 500 companies. This alliance has added a lot of legitimacy to Ethereum and cryptocurrencies as a whole.

Ethereum can be spent, bought and sold on the Wirex platform like their other cryptos (Litecoin, XRP and Bitcoin) and should prove to be a very welcome addition to the Wirex suite of fiat and cryptocurrencies.

Matveev ends,

“We are pleased that we can now offer this popular crypto, but our product growth does not stop here. We have some interesting new services in the pipeline and our recently earned FCA e-money licence has opened the doors for even more products and locations in the near future”.

To celebrate the launch of the ETH wallet, Wirex has teamed up with CryptoDisrupt to donate 20ETH to a charity chosen by the cryptocurrency community. Crypto fans can nominate a charity of their choice by September 11; the winning charity will be selected randomly on September 14.

*Only available to EEA users

The post Ethereum Lands on Wirex Platform appeared first on CoinSpeaker.

Ethereum Lands on Wirex Platform published first on https://medium.com/@smartoptions