Because of the rising price growth, the word Bitcoin has become increasingly widespread since 2017. Bitcoin, which is based on blockchain technology, serves as an entrance point for many people to learn about decentralized technology. The Covid-19 epidemic, on the other hand, which hit the world in the fourth quarter of 2019, ravaged all industries, including the economy. This, however, does not prevent people from innovating. Bitcoin enterprises that develop merge FinTech (Financial Technology) with the financial system, giving birth to DeFi (Financial Decentralization). The blockchain concept of decentralized technology allows each server to be connected to each other and play the same role.Because there is no longer a central bank to mediate transactions, sending digital currency will be as simple as sending an email thanks to the establishment of a peer-to-peer network. This of course makes many business people start looking for agents who can help them, one of which is DeFi development Malaysia.
The main technologies that enable decentralized finance are blockchain and cryptocurrency. When someone uses your traditional checking account, the transaction is recorded in a personal ledger, your banking transaction history, which is owned and maintained by a huge financial organization. Blockchain is a distributed and decentralized public ledger that records financial transactions in computer code.
DeFi development Malaysia makes its way into a wide variety of simple and complex financial transactions. These are supported by decentralized applications called “dapps,” or other programs called “protocols.” Dapps and protocols handle transactions in the two major cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH). While Bitcoin is the more popular cryptocurrency, Ethereum is much more adaptable to a wider range of uses, meaning most of the dapp and protocol landscape uses Ethereum-based code.
Decentralization Finance is a financial product and service that can be accessed by anyone who can use Ethereum, that is, anyone with an internet connection. With DeFi, the marketplace is always open and there is no centralized authority that can block payments or deny you access to anything. A service that used to be slow and risky, but with DeFi human error is automated and more secure now that it’s handled by code that anyone can check and scrutinize.
- To join and participate with a public blockchain, no one else’s authorization is required. As a result, they are an excellent alternative for global implementation. Decentralization Finance also ensures that inequalities may be addressed.
- DeFi operates a financial system without a central authority since data is stored across network nodes.
- The users or accessors of public blockchains are also transparent.
In summary, based on the data collected, the use of DeFi has grown in popularity since 2017, but the development of DeFi increased dramatically in 2020 – 2021. The amount of cash contained in DeFi smart contracts will exceed one billion US dollars in June 2020. The quantity of money in the DeFi ecosystem will have reached 3 billion US dollars by the end of July 2020. As of June 2021, the total amount of funds in DeFi smart contracts had surpassed $50 billion USD.