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Decentralized finance changes the way we interact with money.
Decentralized Finance, or DeFi, is a term that has been gaining traction in recent years. It represents a fundamental shift in the way we think about and interact with finance. To grasp the significance of this transformation, consider the following scenario: for centuries, the world has relied on centralized financial systems, where a central authority, such as the government or banks, wields immense power over the flow of money.
In this traditional setup, governments and banks have the authority to create and regulate currency, exerting a level of control that might not always align with the interests of the people they serve. They have the power to print more money, limit borrowing, and even control access to bank accounts. The trust in this system is paramount, and individuals have limited means to challenge decisions made by these centralized authorities.
For instance, picture a scenario where the government or banks can suddenly freeze or seize your bank account, or they could manipulate the value of the currency itself, impacting your wealth without your consent. In essence, the centralized financial system is built on a foundation of trust in these intermediaries, and any disputes or objections are often powerless in the face of their authority.
