Category: DeFi
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DeFi Risks: Smart Contract-Based Risks
The world of Decentralized Finance (DeFi) has revolutionized traditional financial systems by leveraging smart contracts on blockchain technology. However, with innovation comes inherent risks. In this exploration of DeFi risks, we delve into the technical vulnerabilities of smart contracts, highlighting their non-legally binding nature and the potential for irreversible consequences. We examine historical exploits that…
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DeFi Risks: Operational Risks from Blockchains
DeFi apps depend on public blockchains to execute transactions and resolve contracts. Ethereum is currently the most popular base layer for DeFi, with approximately $46 billion in collateral used in its smart contracts. Other blockchains are also hosting DeFi apps and attempting to compete with Ethereum. However, the smooth operation of these apps relies on…
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DeFi Risks : Governance and Regulatory Risks
Decentralized Finance (DeFi) has ushered in a new era of financial innovation, promising greater accessibility and autonomy for users. However, as the DeFi ecosystem grows in complexity and scale, so do the associated risks. In this second part of our series on DeFi Risks, we delve into two critical aspects: Governance and Regulatory Risks. These…
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DeFi Risks: Paradox of DeFi
Decentralized Finance (DeFi) does come with its own set of challenges. Despite the promise of interoperability, DeFi has resulted in a concentration of nearly all projects on the Ethereum blockchain, introducing a new type of concentration risk. In the pursuit of removing human involvement and automating processes, new risks have arisen or existing ones have…
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What is layer 1 in blockchain?
The fundamental framework of any system based on blockchain technology is the Layer 1 blockchain, as it sets the fundamental rules and protocols. While they may have certain drawbacks, Layer 1 solutions remain paramount in preserving the core principles of blockchain: decentralization and security. Moving forward, it is anticipated that improvements will center around boosting…
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DeFi Powered by Blockchain: Past, Present and Future
The emergence of the Internet has opened up numerous opportunities in various fields, including finance. However, traditional financial systems have yet to keep up with other technological advancements. Despite the widespread availability of the Internet, many individuals still need access to banking services, with an estimated 1.7 billion people worldwide being unbanked, according to the…
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The Way Decentralized Finance Will Transform Real Estate
If you are interested in the future of finance and how technology can transform the real estate industry, this article provides an overview of how decentralized finance (DeFi) and smart contracts can be used to automate financial decisions and manage real estate transactions. What is DeFi? Decentralized finance, or DeFi, refers to a group of…
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How DeFi is revolutionizing the financial industry
Those who are interested in learning about the latest trends in the financial industry and how technology is changing the way we think about and interact with money may want to read this article about how DeFi (Decentralized Finance) is revolutionizing finance. What is DeFi? DeFi (Decentralized Finance) is a term used to describe a…
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Blockchain: from powering Bitcoin to revolutionizing the world
In this article, Forward will take you to know what is Blockchain, including real working examples of blockchain in various companies, for anyone who wants to know more about how this technology, which is the backbone of bitcoin currency, is going to change the world. What is blockchain? It is a decentralized digital ledger that…
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What is Real Yield on DeFi?
Knowing about real yield in DeFi is important for investors who want to make informed decisions about their investments in the decentralized financial ecosystem. It helps them to calculate the actual rate of return on their investment after accounting for inflation and other factors and evaluate the true value of their investment. What is DeFi?…