WTF is DeFi?
Let's break it down π€
DeFi 101: decentralized money ππ§΅
Let's break it down π€
DeFi 101: decentralized money ππ§΅
Disclaimer: none of this is financial advise, just educational content with educational purposes.
If you don't know already what Blockchain is, please start here π
Let's start....β¬οΈ
If you don't know already what Blockchain is, please start here π
https://twitter.com/hey_bernie/status/1461353565557981200
Let's start....β¬οΈ
0. What is DeFi?
The easiest way to explain it is that:
DeFi is a term for decentralized financial products and services accessible to anyone on the Blockchain.
Instead of going to a Bank, we can now have access to financial services provided by people around the world...β¬οΈ
The easiest way to explain it is that:
DeFi is a term for decentralized financial products and services accessible to anyone on the Blockchain.
Instead of going to a Bank, we can now have access to financial services provided by people around the world...β¬οΈ
1. But why do we need something this complex?
π To provide better access to financial services to more people.
Let's see the following eg.:
Imagine you are travelling through Brasil and suddenly you need $10k.
You call your bank in Europe and ...β¬οΈ
π To provide better access to financial services to more people.
Let's see the following eg.:
Imagine you are travelling through Brasil and suddenly you need $10k.
You call your bank in Europe and ...β¬οΈ
2. The best Use Case
...ask for $10k.
"It's an emergency Sir, I really need it now."
The Bank looks into your account and replies:
"Sorry, we can't lend you more than $5k at the moment and it will take 2 working days to have the money in your account."
"Damn but...."β¬οΈ
...ask for $10k.
"It's an emergency Sir, I really need it now."
The Bank looks into your account and replies:
"Sorry, we can't lend you more than $5k at the moment and it will take 2 working days to have the money in your account."
"Damn but...."β¬οΈ
3. The problem
"it's Friday and I really need the money now to get back home on Monday.
If at least someone in Brasil could lend me the money.
We make a contract agreeing on the conditions πͺ
But, wait a sec...β¬οΈ
Read about Smart Contracts
bit.ly/3obAk5K
"it's Friday and I really need the money now to get back home on Monday.
If at least someone in Brasil could lend me the money.
We make a contract agreeing on the conditions πͺ
But, wait a sec...β¬οΈ
Read about Smart Contracts
bit.ly/3obAk5K
4. Understanding the problem
"Which mechanisms are there to solve my problem other than banks?
Can a friend of mine lend me the money?
And how can I have the money faster than the 2 working days?
I've heard this Ethereum thing could help"...β¬οΈ
bit.ly/32UYYjb
"Which mechanisms are there to solve my problem other than banks?
Can a friend of mine lend me the money?
And how can I have the money faster than the 2 working days?
I've heard this Ethereum thing could help"...β¬οΈ
bit.ly/32UYYjb
5. The solution
And here comes DeFi.
Just by connecting apps on the Ethereum blockchain, you can access to people around the globe willing to lend you money.
And the best part?
It works 365 days a year and don't need 2 working days to get the money...β¬οΈ
And here comes DeFi.
Just by connecting apps on the Ethereum blockchain, you can access to people around the globe willing to lend you money.
And the best part?
It works 365 days a year and don't need 2 working days to get the money...β¬οΈ
You agree on the conditions with the borrower using a Smart Contract, have the amount wired to you in ETH and puff, done.
After you've got the amount you've asked in ETH, you exchange it for $$ and withdraw it from your account.
"But is DeFi just about lending money?" No ...β¬οΈ
After you've got the amount you've asked in ETH, you exchange it for $$ and withdraw it from your account.
"But is DeFi just about lending money?" No ...β¬οΈ
6. Other Use Cases
"So what can I do with DeFi other than lending money?"
Some use cases are:
β’ Buy Insurance
β’ Fund your ideas
β’ Start savings accounts
β’ Send money around the globe
β’ Build a portfolio of crypto assets
"But that's it?
Why should I care about DeFi?"...β¬οΈ
"So what can I do with DeFi other than lending money?"
Some use cases are:
β’ Buy Insurance
β’ Fund your ideas
β’ Start savings accounts
β’ Send money around the globe
β’ Build a portfolio of crypto assets
"But that's it?
Why should I care about DeFi?"...β¬οΈ
7. DeFi big vision
You should care because DeFi isn't just about giving financial access to people who already have it.
Instead, in the US alone, there are ~60 million people with barely no access to financial services.
And that has huge costs...β¬οΈ
forbes.com/advisor/bankinβ¦
You should care because DeFi isn't just about giving financial access to people who already have it.
Instead, in the US alone, there are ~60 million people with barely no access to financial services.
And that has huge costs...β¬οΈ
forbes.com/advisor/bankinβ¦
8. Helping the unbanked
Also, did you know that around the globe ~1.7 billion people have barely no access to Bank accounts?
blog.cfte.education/the-worlds-topβ¦
Also, did you know that around the globe ~1.7 billion people have barely no access to Bank accounts?
blog.cfte.education/the-worlds-topβ¦
"But Bernie, how does this affects me?"
Ok, let me give you a proper story about someone whose life got messed up due to having no access to proper financial services.
Read Marcos Villa story, a 40 year's old Mexican US immigrant π
time.com/nextadvisor/baβ¦
Ok, let me give you a proper story about someone whose life got messed up due to having no access to proper financial services.
Read Marcos Villa story, a 40 year's old Mexican US immigrant π
time.com/nextadvisor/baβ¦
And by the way, DeFi offer very interesting solutions when compared with Traditional Finance.
And how?
Because it cuts out the middle man - the Banks - who profit from lending you money and managing your money.
Here's an example:
time.com/nextadvisor/baβ¦
Wrapping up...β¬οΈ
And how?
Because it cuts out the middle man - the Banks - who profit from lending you money and managing your money.
Here's an example:
time.com/nextadvisor/baβ¦
Wrapping up...β¬οΈ
9. Wrapping up
As mentioned before, DeFi is decentralized finance who lives in the Blockchain through the form of Smart Contracts.
It gives access to peer-to-peer financial services 365 days a year, 24h a day.
The Big Vision behind DeFi is to...β¬οΈ
bit.ly/3obAk5K
As mentioned before, DeFi is decentralized finance who lives in the Blockchain through the form of Smart Contracts.
It gives access to peer-to-peer financial services 365 days a year, 24h a day.
The Big Vision behind DeFi is to...β¬οΈ
bit.ly/3obAk5K
...make financial services more accessible to the ~1.7 billion people around the globe with barely no access to Banks or financial services.
"But how to use DeFi? Where to start?"
And that's the topic for our next thread....β¬οΈ
"But how to use DeFi? Where to start?"
And that's the topic for our next thread....β¬οΈ
If you're here -- Thanks for reading.
Want to understand Web 3.0?
Then follow me @hey_bernie
I'm writing a thread like this every day until year-end.
Want them in your email? Then subscribe the newsletter π
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Want to understand Web 3.0?
Then follow me @hey_bernie
I'm writing a thread like this every day until year-end.
Want them in your email? Then subscribe the newsletter π
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I write about:
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Summary:
0. What is DeFi?
1. Why do we need something this complex?
2. The best Use Case
3. The problem
4. Understanding the problem
5. The solution
6. Other Use Cases
7. DeFi big vision
8. Helping the unbanked
9. Wrapping up
0. What is DeFi?
1. Why do we need something this complex?
2. The best Use Case
3. The problem
4. Understanding the problem
5. The solution
6. Other Use Cases
7. DeFi big vision
8. Helping the unbanked
9. Wrapping up
Also,
I'm creating a private Discord Server to discuss:
β’ Creator economy
β’ Twitter growth
β’ Web 3.0
If you want to be part of it then:
1 β’ follow me here on Twitter
2 β’ retweet the first Tweet of this thread
3 β’ DM me saying you want to join the group
ππ€β€οΈ
I'm creating a private Discord Server to discuss:
β’ Creator economy
β’ Twitter growth
β’ Web 3.0
If you want to be part of it then:
1 β’ follow me here on Twitter
2 β’ retweet the first Tweet of this thread
3 β’ DM me saying you want to join the group
ππ€β€οΈ
Sorry, wrong on the benefits of using DeFi.
Please see the following link π
medium.com/the-capital/trβ¦
Please see the following link π
medium.com/the-capital/trβ¦
Sorry, bad link on my Tweet on the Benefits of using DeFi.
Please read the following link instead π
medium.com/the-capital/trβ¦
Please read the following link instead π
medium.com/the-capital/trβ¦
β’ β’ β’
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