What is a decentralized economy?

A decentralized economy is an economy without a central authority to control the entire economic system. Instead, the economy is regulated by the market supply and demand powers.

Decentralized economies feature peer-to-peer transactions, decentralized decision making, and distributed ownership. In a decentralized economy, power is distributed among the participants, and there is no single point of control.

The decentralized economy development has far-reaching implications. When power is distributed among the participants, it results in a more democratic and egalitarian society.

There is no need for intermediaries in a decentralized economy.

Blockchain technology and decentralized economy in particular are still in their early stages of development, but they are potentially able to revolutionize the traditional centralized economy. DeFi is one of the most promising directions of the decentralized economy.

Although DeFi is still in its infancy, especially with the recent onset of the crypto winter, it is potentially able to experience exponential growth in the coming years.