DEFI (DECENTRALISED FINANCE) and CRYPTO 101 – What You Need To Know

DEFI (DECENTRALISED FINANCE) and CRYPTO 101 – What You Need To Know
BlockChain and Crypto, Business, Titan Chambers admin

“AN INTRODUCTORY GUIDE TO BITCOIN AND DECENTRALISED FINANCE”

Fintech has enabled significant innovation in the financial services sector. Decentralised Finance (DeFi) is an industry term that describes a financial system or ecosystem that operates without the need for intermediaries (as do legacy banking systems). Instead, DeFi relies on automated protocols such as smart contracts on a blockchain.

As with traditional contracts that involve two or more parties making an agreement, smart contracts involve a multiparty agreement but they take this a step further as they are self-executing. Since they are processed by the blockchain, they can be sent automatically without a third party.

Our Brian Sanya Mondoh, Attorney-at-Law, explains: “DeFi is a global, open alternative to every financial service used today; i.e. from savings, loans, trading, insurance and more …”.

Brian examines some of the legal implications of DeFi and popular cryptocurrencies (Bitcoin and Ethereum) such as the intersection between transparency and user privacy.

Bitcoin in many ways can be seen as the first DeFi application; it enabled digital cash payments without needing to rely on costly third parties … (it) is based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for an intermediary.

Brian Sanya Mondoh

Learn more in this short (6 minute) read from Brian, globally accredited Blockchain and CryptoCurrency Attorney – as featured on Crypto Curry Club. The linked article was originally published in Blockchain Industry Review – a Crypto Curry Club Magazine. The magazine is published monthly and is available in either a soft copy or printed version.

You can locate Brian’s profile here and/or connect with him on LinkedIn here. Brian is a dual qualified Attorney-at-Law and practices in Trinidad and Tobago out of Titan Chambers. You can reach out to work with him on Decentralised Finance (DeFi) initiatives in Trinidad and Tobago.