DeFi. Advantages of decentralization. Part 1/2

👁 Decentralization is not just about democracy and empowerment of users, it is also about guarantee of security! We would like to explain in this article why we are committed to decentralization and what its advantages are.

🌈 The mission of DeFi is to eliminate centralized intermediaries in financial transactions, whether it be an exchange, insurance, or loan payment. The very term “decentralization” captures the idea behind this phenomenon: when users make transactions by transferring assets peer to peer (p2p transactions), and the third party is not another individual who can cheat or make mistakes, but rather an automated system. A decentralized system cannot be influenced by any individual or a group, and this prevents any unauthorized interference.

🔘 DeFi is evolving, and a need for new technologies such as cross-chain emerges as it develops. DeFi was initially launched as a system on the Ethereum blockchain. Later, the technology scaled up and went beyond a single blockchain, embedding into blockchains with different structures.

⏺ It had the properties of a single chain first (a system operating within the same blockchain), but later it became a multi-chain (able to operate on different blockchains).

💬 Cross-chain is the next stage of development, which allows not only to transfer assets between blockchains, but to send one asset in one blockchain and receive another asset in another blockchain.