Decentralized finance (DeFi) is an emerging financial technology that challenges the current centralized banking system. DeFi attempts to eliminate the fees banks and other financial service companies charge while promoting peer-to-peer transactions. DeFi, like the blockchains and cryptocurrencies it supports, is still in its infancy.
What is the future of digital finance in 2022?
The Economist regarded the future of digital finance in 2022 as a "three-way fight" between: Big Tech, such as Facebook with its digital wallet; "big rich countries" that have been testing their own digital currencies; and software developers "building all sorts of applications" to decentralize finance.
Why is centralized finance better than Defi?
Centralized finance provides users with lesser anonymity than transactions in DeFi. Many DeFi projects are created and managed by anonymous teams, and even Bitcoin's founder has remained unknown to this day. The miners operate the DeFi smart contracts implicitly once they've been installed.
