Blockchain is a technology that provides a reliable accounting system, and many large companies and even banks themselves have begun to participate. The traditional financial system is a product of the industrial age, but in today's transition from industrialization to digitalization, smart finance will become a new financial system.
Digital currency must be a major trend in the future. It will gradually replace the existing legal currency and combine with blockchain technology to become a new financial system.
And DeFi (Decentralized Finance), also known as distributed finance and with the help of blockchain, allows people to participate in the financial market and enjoy financial services in a zero-threshold way without international borders, no differences in identities, and no differences in amounts.
A mechanism of most of the assets circulating in DeFi are tokens issued by various blockchain systems. These tokens are programmable and can control the issuance and circulation of assets through smart contracts. In recent years, the continued to expand, and various financial products such as stable coins, lending, decentralized transactions, wealth management, and insurance have emerged.
DeFi has a high-quality business model. However, the current technology is not mature enough, and large-scale applications themselves need more education and popularization. Blockchain is too complicated, and it is not easy to explain it. Attracting new users into the market through the wealth effect is a very effective means of operation. The Internet has experienced more than ten years of development, and the blockchain may also take more than ten years. When there is a regulatory system and the stable coin ready, the market will usher in a new scene.