DeFi (“Dee-Figh”) is short for Decentralized Finance and lets you manage and invest your assets without banks.
An encrypted system, impossible to hack, creates the safest way to store funds.
DeFi never closes and provides you with secure, 24/7 access to your funds.
Put your money on growth in DeFi, instead of losing value in traditional banks.
DeFi utilizes “smart contracts” to offer financial services without traditional intermediaries.
Right now, there are assets totaling about $90 billion in DeFi. That is 0.004% of the world’s $2,000 trillion in global assets.
This is just the beginning.
DeFi is a new financial system that uses cryptographic security. To participate, you need to exchange your local currency to cryptographic currency (cryptocurrency).
You choose.
Learn the basics on DeFi at this page, then visit the TitanX page to learn more and how to get started.
Decentralized Finance, or DeFi, is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments. Instead, it utilizes smart contracts on blockchains, like TitanX on Ethereum.
A block of data (in the digital cloud) that stores transactions, locked to each other by cryptographic security and is linked to the previous block to form a chain of blocks, known as a blockchain. Blockchains keep track of all transactions, without intermediaries such as banks.
Blockchains are the worlds most secure way to store data, as they are immutable, meaning that no one could change the data after it has been cryptographic stored.
Ethereum is the second biggest blockchain behind Bitcoin. Ethereum was launched in 2015, and its native cryptocurrency is Ether (ETH), used for transaction fees.
In 2022, Ethereum transitioned from Proof of Work (PoW) to Proof of Stake (PoS), making it more energy-efficient and environment friendly.
TitanX is built on Ethereum.
Yes and no. It depends on which system is being used to secure the network and verify transactions.
Proof of Work (PoW)
“Miners” use powerful computers to solve complex puzzles. The first to solve gets to add the next block and receive rewards. This process consumes a lot of energy, and creating the hardware for proof of work is detrimental to the environment. Bitcoin uses Proof of Work and is bad for the environment.
Proof of Stake (PoS)
Validators are chosen to create new blocks based on how much cryptocurrency they’ve “staked” or locked up as collateral. This method is much more energy-efficient than PoW and does not need special hardware. Ethereum use PoS, which is better for the environment.
DeFi Protocols are the fundamental, decentralized infrastructure that provides financial services on blockchains.
dApps (decentralized apps) are user-friendly applications that allow people to access and interact with the services provided by DeFi protocols.
Gas fees are the cost of using the blockchain network. It’s a transaction fee. When you make a transaction on a blockchain, it needs to be processed and verified by the network. This requires computational power and resources, and the gas fees are the cost of using these resources. No external company earns money from these fees.
• Start with a small amount, just to get started and learn how DeFi works.
• Never store assets on centralized platforms like Coinbase, Binance etc. They can get hacked, go bankrupt or freeze your assets. Always use a DeFi wallet.
• Add an extra security layer with a hardware wallet. It’s a physical device that securely store your private keys offline. Trezor.io is known to be the most secure hardware wallet on the market and is used by experienced users or for storing significant amounts of crypto, typically $10,000 or more.
• If you want to learn crypto you need to be on X (formerly known as Twitter). Follow accounts that @defi_dgn follows to get started.
A digital currency that operates on a computer network (in the digital cloud) without the need for a central authority, such as a government or bank. Encrypted currencies are more secure than traditional currencies due to their decentralized nature and cryptographic security.
A crypto wallet is a digital wallet designed to securely store, send, and receive digital currencies. It’s like a traditional bank account, but it gives you complete control over your assets.
Key Components of a Crypto Wallet:
• Password/PIN to access the wallet.
• Public Address (an account number) that you can share to receive crypto assets.
• Seed phrase: A series of words (usually 12 or 24) that serves as a master key for your wallet, allowing you to recover your assets if the wallet is lost or damaged.
It’s crucial to store your seed phrase in a secure, offline location, as anyone with this phrase can access your assets.
There are two main types of crypto wallets:
• Hot Wallets:
Online wallets connected to the internet, convenient for frequent transactions and smaller amounts. Example: Rabby.io (user-friendly and often used by beginners).
• Hardware Wallets (more secure):
Physical devices that securely store your private keys offline. Example: Trezor.io (used by experienced users or for storing significant amounts of crypto, typically $10,000 or more).
Trezor can be connected to Rabby Wallet to get the best of both worlds: Trezor’s security and Rabby’s user-friendly interface.
A contract address is a unique identifier for a smart contract deployed on a blockchain. Contract addresses are typically 40-character hexadecimal strings and are immutable once created. Always verify contract addresses to avoid sending funds to the wrong location.
Educational only. Not financial advice. defidgn.com operates on a non-profit basis (no ads or referral links). The faster DeFi grows, the quicker we pave the way for a fairer financial future.
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