OVERVIEW

BLOCKCHAIN

1. WHAT IS BLOCKCHAIN?

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.
A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralized database managed by multiple participants is known as Distributed Ledger Technology (DLT).

2. BLOCKCHAIN CHARACTERISTICS

IMMUTABILITY: Every node on the network has a copy of digital ledger. To add the transaction, every node needs to check the validity. If the majority thinks it’s valid, the it is added in the ledger. This promotes transparency and make it corruption-proof
CONSENSUS: Every blockchain thrives because of the consensus algorithms. The architecture is clearly designed and the consensus algorithm are at the core of this architecture. Blockchain has a consensus to help the network make decisions.
DECENTRALIZED TECHNOLOGY: The network is decentralized meaning it doesn’t have any governing authority or any single person look after the framework. Instead, ta group of nodes maintain the network that making it decentralized
ENHANCED SECURITY: As it eliminates the needs for central authority, no one can change any characteristics of the network for their benefit. Also using encryption ensures another layers of security for the system.

3. BLOCKCHAIN APPLICATION

DECENTRALIZED FINANCE

1. WHAT IS DEFI ?

DeFi is short for “decentralized finance,” an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries.
DeFi utilizes the power of Blockchain as decentralization and transparency to create an open finance. In it, everyone can access and use it anywhere, anytime without being influenced by any centralized individual or organization.

2. DEFI ADVANTAGE

The biggest difference between traditional finance and decentralized finance is Custodial. In traditional finance, there are intermediaries with centralized power in organizations, markets and financial tools. Meanwhile, DeFi leverages Blockchain's power of transparency and decentralization to eliminate these intermediaries.
DeFi eliminates centralized management intermediaries. This is very clear, as I analyzed above. With the adoption of Blockchain technology, the elimination of intermediaries becomes clear. User can know where his property is or what state.
DeFi applications are built on top of blockchains, they are open source. Therefore, it is relatively easy to upgrade or build and develop many DeFi applications.
Last modified 7mo ago