DeFi REVOLUTION - The FUTURE of Financial System | Why DeFi Changes Everything | MemeFi

do you know how to get along in cryptocurrency with the advance of defi the rules of the financial system are changing I'm Eva and in this video I'll explain how DFI will soon shut down all banks making credit card absolete I'll break down the components of the financial system of the future and why it's time for you to start understanding it DFI or decentralized Finance is a true Revolution picture assist system where your money works for you not for banks where every action is transparent and you have full control over your funds sounds fantastic let's dive into how it works and why DFI is changing the game in the financial world what is DFI DFI is a financial system without intermediaries there are no banks or other institutions controlling your money instead you manage your funds yourself through specialized blockchain applications want to take out a loan make a deposit or exchange currency in the DFI world all of this is possible directly without unnecessary middleman you interact with other system participants using smart contracts and decentralized applications now let's take a closer look under the hood of DFI and examine its five main components first blockchain the foundation of DFI picture a massive digital Ledger spread across thousands of computers worldwide that's a blockchain the badrock of DFI every transaction gets recorded and each computer or note keeps its own copy what's a big deal these nodes are constantly checking each other try to mess with one record and the others will catch your at handed it's like having thousands of eagy accountants watching every penny talk about security the blockchain stores info in link blocks forming a chain each blocks doesn't just hold the transactions it also points the previous block this makes nearly impossible to alter old records it's like trying to change history good luck with that this setup ensures DFI is transparent and trustworthy every transaction is out in the open and ready for everyone to verify second smart contracts the heart of DFI now meet smart cont contracts the real game changers of DFI imagine a contract that enforces itself no human need it cool right let's say you want a loan in DFI you'd use a Smart contract provide some crypto as collateral and boom the funds automatically land in your account no one can mess with the process or change the rules mid game smart contracts kick middleman to the crop making everything faster and cheaper plus all terms are are clear from the get-go and sattin stone no fine print surprises here thir decentralized apps the interface of DFI meet D apps the Rabel apps of the financial world this blockchainbased programs are like regular apps on steroids why they can't be shut down or messed with by any single entity the whole network got their back think of a cryptocurrency exchange app in the old school world it's tied to one Central server but D apps they're free Spirits all transaction happen directly between users through the blockchain no middle man no fuss what's in it for you total control over your data and Cash Plus these bad boys are nearly unhackable try taking down thousands of computers at once not going to happen now what makes this dfsd digital app assets called tokens stick around I'll split the bin on how to snag a token lawn at the end of this video fource tokens the digital gold of DFI tokens aren't just some numbers on your screen they're the real deal in DFI think of them as digital Swiss Army knives they can represent anything cold heart cash hot stocks even voting rights in decentralized organizations what can't you do with stocking use them to shop invest in the next big scene or have a say in how platforms are on they're born on blockchains like ethereum and zip between users faster than you can say transaction complete but here's the kicker tokens can be as unpredictable as a roller coaster their value can Skyrocket or nose dive and the blink of an eye that's where their chill cousins stable points come into play but more than that in a sec gives stable coins that come in the crypto storm enter stable coins the then masters of the crypto World while other cryptocurrencies are on a wild roller coaster ride stable coins keep their cool how do they pull it off they're TI to real world assets like the dollar euro or even gold want to deep your toes in crypto without the vertigo stable coins are your life jackets picture this you're about to buy something with crypto but in the time it takes you to click purchase the price goes Bonkers with stable coins that ancient history their value is as steady as a rock these steady edes are the secret s of DFI they let you stash your cash and make transactions without worrying about sudden price free Falls hungry for more stable coin knowledge we've got a whole video on it check out the link in in the description now doesn't all this sound like banking 2.0 smart contracts that are sa in stone a system where you are your own Banker it's like DFI throwing the gaunlet to the traditional Financial system but can DFI really knock out the old school Banks let's set up a showdown between the financial heavy weights round one governance and control in the blue BL Corner we have the traditional system banks financial institutions and governments call the shots here they decide who gets a loan and who doesn't want to change the rules good luck with that picture this you need a loan but the bank says Nope or they suddenly jack up your account fees what can you do not much except maybe switching banks now in the right corner DFI is bouncing on its toes ready to rumble here you're the boss of your own money no Central Authority calling the shorts all rules are backed into smart contracts and apps and nobody can change them solo need a loan no need to grow at the bank just hop up onto a DFI platform and strike a deal directly with another user freedom of choice and total control that's DFI secret weapon in this round so who's ahead DFI is showing off some some impressive moves with its flexibility and freedom but don't count out the traditional system just yet it's still packing a punch with its stability and regulation score after round one it's TI DFI one traditional system one but folks this financial fight is just warming up round two security and risks the traditional system steps back into the blue corner it's bodyguards Banks and financial institutions they're keeping your data and cash locked up on their services sounds safe right but hold up what if hackers crashed the party or the bank goes belly up to your in a crisis your her on cash could vanish in a path of smoke now let's see what DFI got in the righted corner here the blockchain itself is your bodyguard every transaction is out in the open and locked tight your data isn't sitting in one place it's spread across the whole network even if one part gets hacked the rest keeps on ticking plus you're in charge of your own money sounds like an account right well not quiet DFI is got its own weak spots bux and smart contracts or Cod vulnerabilities could be a gold mine for scammers who's winning in this round both most Fighters are showing some fancy footwork the traditional system is reliable but could get floored by a big hit DFI got some Sleek new moves but you've got to stay on your toes score after round two another tie DFI 2 traditional system too round three accessibility of financial services the traditional system Lumbers into the ring pered on the mountain of paperwork want to open an account prepare for an nealan of forms and checks living in the bonus without fancy Banks to flock Paul but wait here comes DFI bursing onto the scene with a battlecry finance for all no red tape no documents Dodge got internet boom you're in loans Investments currency swaps all at your fingerprints chilling in their remote Village or prefer to keep things down low DFI caught your back who's taken this round DFI lands a knockout punch spinning open the doors of Finance to Millions worldwide score after round three DFI search a hat DFI 3 traditional system 2 DFI pulling away but hold on to your hands folks this financial face off isn't over yet yet let's see DFI flexing his muscles in the real world DFI in action two game changers check out these two DFI heavy heaters already shaken up in financial scam one decentralized exchanges taxes are the new Cool Kids on the Block letting you swap cryptos without a middleman here's the low down swap cryptos directly without Smart contracts keep your funds in your own pocket no sketches third parties blockchain does all have a lifting automatically two Landing platforms DFI Landing platforms are telling traditional Banks to take a hike here's how it rolls offer up some crypto escalator and get a loan in return interest rates supply and demand call the shorts ever since locked in a smart contract no take backs this platform are a double threat borrow or earn by Landing your crypto but heads up always read the fine prints and know the risks to wrap it up DFI is a GameChanger with the potential to flip the financial World on its head but like any shiny new toy it comes with its own set of risks approach with caution and make sure you know what you're diving into if this video got your brain buzzing smash that like button And subscribe we've got tons more mindblowing content coming on your way