Cryptocurrencies should be able to be used by anyone, anytime, and from anywhere in the world
Take savings, loans, trading, insurance, and payments. These could all be benefited from a Decentralized Finance (DeFi) system, which would be global, and accessible by anyone with a smart phone and internet connection.
This is now possible on smart contract blockchains, like Ethereum. “Smart contracts” are programs running on the blockchain that can execute automatically when certain conditions are met. Smart contracts enable developers to build far more sophisticated functionality than simply sending and receiving cryptocurrency. These programs are what we now call decentralized apps, or dapps.
You can think of a dapp as an app that is built on decentralized technology, rather than being built and controlled by a single, centralized entity or company. Like a Bank or insurance company
While some of these concepts might sound futuristic–automated loans negotiated directly between two strangers in different parts of the world, without a bank in the middle– many of these dapps are already live today. There are DeFi dapps that allow you to create stablecoins (cryptocurrency whose value is pegged to the US dollar), lend out money and earn interest on your crypto, take out a loan, exchange one asset for another, go long or short assets, and implement automated, advanced investment strategies.
What is the difference between DeFi and traditional banks etc?
The main one is removing humans from the task and replacing it with code. Removing errors and enabling privacy.
The code is visible on the blockchain for anyone to audit. This builds a different kind of trust with users, because anyone has the opportunity to understand the contract’s functionality or find bugs.
Speed and distance allows anyone, anywhere, to access these types of Dapps. They are Permissionless, created by anyone, for anyone.
Plugchain has created a suite of Dapps that tackle some of the most challenging issues in today’s financial world. Introducing technology and infrastructure to help you.
Plugchain is a large decentralized blockchain-based settlement that has a myriad of dApps that users can use in crafting their own community.
Plugchain is also a DeFi platform. It uses a cross-chain network that is constantly improving. Learn about how Plugchain interprets and brings value of cross-chain network into decentralized applications.
