While you’ve likely come across the world of cryptocurrencies, you most probably have stumbled upon the term “blockchain”. But what is the blockchain solution? Blockchain is not only the revolutionary technology behind cryptocurrencies, it also has a large use case outside of the cryptocurrency and even the finance sector.

In the decade since blockchain technologies and digital ledger technology came to light, a host of blockchain networks have been created, most with their own digital currency. As the industry has grown and new blockchain networks have emerged, innovation in the space has increased significantly.

From the Ethereum blockchain providing a platform on which developers can create digital assets and smart contracts to corporate organizations implementing a private blockchain in order to streamline their services, the technology is propelling mankind forward in ways not witnessed in decades.

The blockchain solution provides much more than just digital assets, and industries far beyond just the payment processing ones are catching on. With traditional business networks incorporating the technology, the world of permissioned blockchain is igniting.

What is Blockchain?

Blockchain is a decentralized, transparent, immutable technology that keeps a public record of all information entered. Designed to record and distribute information, not to be edited. Also referred to as a public ledger, a blockchain keeps a record of all information ever inputted and stores it chronologically in blocks.

These blocks are linked to each other through a hashing system, which ensures that no one can ever tamper with the previous records, or try to manipulate the information on them. The “chain” of blocks make up the blockchain database.

The decentralized technology is not typically run by one entity, but rather from a variety of computers (also known as nodes) that make up the network, and work together to validate transactions and all information added to the blocks. Blockchain can be used in two forms, as a public blockchain or as private blockchain networks.

The public version allows anyone to view all information on the network, while the private reserves the information for members granted access.

The Advantages of Blockchain Technology

Powerful Technology

Invented in 2008 alongside Bitcoin by an anonymous entity Satoshi Nakamoto, blockchain is the technology that fueled the new way that money is transacted. Not only that, the technology offers incredible use cases far beyond the financial world. 

Fully Trusted, Fully Automated

One of the key features of blockchain is its ability to function without a central authority. The technology is designed to be maintained by various operating systems on the network, with full autonomy dispersed evenly. Information is stored on the blockchain in such a way that everyone can view it but no one can go back and tamper with it.

Powering Industries

While blockchain is the technology behind crypto, it also offers an incredible backbone to a diverse range of industries outside of this space. Companies like Nestle, Microsoft and Walmart are onboarding blockchain, proving to offer a strong and highly adaptable infrastructure to financial, property, and supply chain management entities. The number of blockchain companies is growing by the day.

The Core Benefits of a Blockchain Network

Decentralized

Blockchain networks are designed to be entirely decentralized meaning that there is no one central authority. The entire network is maintained by nodes (computers) around the world and no single entity has control. 

Immutable

Once the information has been added to a blockchain, no one can tamper, edit, or remove it. As information is verified and added to blocks, this solidifies its presence on the blockchain forever. 

Transparent

Blockchain offers a transparent view of all the activity that takes place on the network. This takes away the need for any checks or balances as all the information is available at any given time, in real-time.

What is the Difference Between a Public Blockchain and Private Blockchain?

When understanding what is blockchain, a common question is whether blockchain is secure. The answer is yes, blockchain is very secure.

Due to its decentralized nature, the technology requires a network of operators (computers) to verify and input all the information. As soon as one tries to input incorrect information or conduct illicit transactions, the network will recognize this and reject it immediately. 

The difference between a public and private blockchain is that public blockchain networks are open for anyone to see, while private blockchains are closed to an organization or a selected group of people.

Cryptocurrency networks are examples of public blockchain networks in that anyone can view all the transaction data. For a private blockchain, however, users will need special permission to access this information.

How is Blockchain Tamperproof?

Each block is made up of three things: the hash code of the previous block, the relevant information, and its own hash code.

When a new block is added, the new block will again have the hash of the previous block, the relevant information, and its own hash. This special sequence of hashes ensures that all blocks are stored chronologically, in a linear fashion, meaning that you cannot tamper with one block's information without tampering with every block after that.

Tampering with blocks would take an enormous amount of computing power and is largely considered impossible. Hence the security of using a digital asset or digital currency.

Blockchain Explained: How Does It Work

At its core, blockchain records and distributes information to a wide network of users that participate in verifying the information and maintaining the network. Let’s take a deeper look at Bitcoin transactions to further explain how blockchain works. 

If one user wanted to send a portion of Bitcoin to another user, they would require the user’s wallet address. Each wallet is made up of two codes, a public and private key, which enable the user to receive BTC (through the public key), as well as access BTC and conduct transactions (through the private key). The sender will then input the receiver’s wallet code and send the amount of Bitcoin they desire. 

This transaction will then enter a pool of transactions waiting to be verified by a miner on the network. The miner will ensure that the sender owns the amount they are sending, and verify the transaction along with a number of other transactions.

On the Bitcoin network, the size of one block is 1MB, which equates to roughly 3,200 transactions able to be stored in one block. When building a blockchain network, the size of the blocks can be increased or decreased to suit the use case. 

Once the transaction has been verified, the miner will record transactions processed and ensure they are added to the chain. The transaction ledger will then be distributed to the rest of the operators on the network. This new version will then override the older versions, and so on as more blocks are added.

Once the block is added to the blockchain and distributed, the funds will reflect in the receiver’s wallet. No need for a bank account or legal contracts, Bitcoin (and other digital currencies) operate entirely separately from traditional banking institutions and allow for the fast, efficient and cost-effective transaction of value.

Fraudulent transactions cannot take place as this will be flagged long before the block is added to the chain. Blockchain work in such a way that network participants can immediately flag ill actors and dismiss fraudulent financial transactions.

Understanding the Difference Between Blockchain and The Bitcoin Blockchain

The burning question: how does blockchain compare to Bitcoin. The answer is that it doesn’t, there are two separate, co-dependent technologies. Bitcoin, the cryptocurrency, is built on blockchain technology and requires it to function. There is no Bitcoin without blockchain technology.

Consider it the backbone of all cryptocurrencies. Blockchain technology, however, is an adaptable technology that can be used outside of the cryptocurrency industry. The technology can be used in any industry, provided that they require a transparent, immutable public ledger. 

One thing the two do have in common is that they were both introduced to the world at the same time. While the concept of blockchain technology was initially invented by researchers W. Scott Stornetta and Stuart Haber in 1991, it was referred to as distributed ledger technology (DLT) and was created purely to store office documents.

The anonymous entity Satoshi Nakamoto built on this and ultimately solved the double spending problem it was plagued with. In 2008, Nakamoto released both blockchain technology and Bitcoin in a whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System.

The Bitcoin blockchain refers to the network, while blockchain technology refers to the technology as a whole.

In Conclusion

What is blockchain? Blockchain technology is the transparent, immutable storage of information. As mentioned earlier, this technology has use cases far outside of just the cryptocurrency and financial ecosystems.

Industries like renewable energy, supply chain management, and even farming sectors are now incorporating blockchain technology into their business systems, empowering them with a fully automated and safe means of storing records. 

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A consistent member of the top 10 biggest cryptocurrencies by market cap, Cardano has earned itself an impressive position in the market. The innovative project was developed by a team of brilliant minds, including the co-founder of Ethereum, Charles Hoskinson, and aims to be the next generation of Ethereum. Let's explore what Cardano is and why has become a popular cryptocurrency. 

What is Cardano?

Cardano is the blockchain platform that has taken the industry by storm since its launch. Alongside its cryptocurrency, ADA, Cardano provides developers with a platform on which to build decentralized applications (dapps) and smart contracts. Through a more scalable and sustainable model, Cardano seeks to improve on Ethereum's offering and propel the blockchain and crypto industry into a more eco-friendly future. 

Cardano uses a Proof-of-Stake consensus to facilitate the network and is considered to be a third-generation blockchain platform (Bitcoin being the first, Ethereum the second). Unlike other blockchain platforms, Cardano does not have a whitepaper and instead relies on rigorous academic and peer-reviewed research. The platform has numerous ties with universities around the world, contributing to the funding of the development of blockchain research. 

Who created Cardano?

Cardano was first conceptualized in 2015 and later launched in September 2017 by Ethereum co-founder, Charles Hoskinson. His goal was to build a highly scalable and energy-efficient smart contract platform. After leaving the Ethereum team, Hoskinson grouped together a team of expert engineers and academics and set out to build a layered blockchain platform from scratch. 

Today, the platform is developed by a group of organisations that each focus on different elements of the business. The first is the Cardano Foundation which is responsible for standardizing, protecting and promoting the protocol technology. Input-Output Hong Kong (IOHK) focuses on building technological solutions centred around financial inclusion, while its sister company Emurgo is a global initiative designed to "support developers, startups and enterprises in developing blockchain solutions".

Together these companies assist in the growth and development of Cardano. While regulatory news and Bitcoin may be behind many altcoin price swings, Cardano has done well to establish its value in the crypto market and build a community that supports its goals.

How does Cardano work?

Through a Proof-of-Stake (PoS) mechanism known as Ouroboros, Cardano provides peer-to-peer transactions, dapp development and the creation of smart contracts. The layered architecture makes this possible, with one layer, known as the Cardano Settlement Layer (CSL) responsible for validating transactions and maintaining the ledger of balances while the Cardano Computing Layer (CCL) is responsible for the execution of all dapp computations via smart contracts. 

The separation of these two layers allows the platform to offer lower fees, less network congestion and faster transactions. When thoroughly tested in 2017, Cardano was able to process 257 transactions per second (TPS), a large jump from Bitcoin's 4.6 TPS and Ethereum's 15 - 20 TPS. 

Through its network of validators (known as a miner on a Proof-of-Work mining network) who each hold a stake in the network, Cardano is able to deploy smart contracts, facilitate the peer-to-peer exchange of value and provide the building blocks for dapp and token creation. 

What is ADA?

Let's first cover where the name came from. ADA is a nod to the person regarded as the "world's first computer programmer", the 19th-century mathematician, Ada Lovelace. Cardano on the other hand was named after the 16th-century Italian polymath Gerolamo Cardano. Each phase in the project's development is named after famed historical characters pertaining to maths, physics and literature.

While ADA can be used as digital cash to conduct payments, the cryptocurrency has a wider range of uses. The native token to the platform's operations, ADA, can be used to facilitate transactions, as a store of value, to participate in staking functionality, and to pay transaction fees on the network. 

ADA will also be used as a governance token in the future, allowing its holders the ability to vote on upgrades and changes on the platform. This is in line with Cardano's intentions to make the network entirely decentralized and community-driven, incorporating an automated treasury system that would oversee and execute all funding required. 

Cardano's Roadmap

Another interesting element to the Cardano network is that all five development phases are consistently worked on at the same time, as opposed to moving on to the next once one is complete. 

Of the five phases, each focuses on specific functionalities:

Byron - foundation (completed)

Shelley - decentralization (completed)

Goguen - smart contracts

Basho - scaling

Voltaire - governance

Where To Buy Cardano (ADA)

If you're looking to add ADA to your cryptocurrency portfolio, you can conveniently and securely buy the token through your Tap app. If you haven't done so already, simply download the app, complete the quick identity verification step and load your account with funds (crypto or fiat) with which you can buy ADA. The cryptocurrency will then be deposited into your unique ADA wallet, available for your perusal.

Cryptography is the process of converting messages into unreadable text so that only the intended recipient will be able to read them. Cryptography is responsible for the security, anonymity, and trust less transactions of digital currency. – entirely without the services of a financial institution.

We'll define cryptography as the study of methods to exchange sensitive information over an insecure channel in such away that only authorized parties can access it. In our case, this will be exchanging ownership of cryptocurrencies (which is represented digitally), or transferring ownership by signing digital messages.

A bit of history:

Cryptography dates back to the time when people began exchanging messages in forms other than face-to-face conversations(e.g., via written letters). The first known use of cryptography can be traced to Egypt, about 2000 years ago, during the reign of Pharaoh Thutmose III. Other known historical uses of cryptography are in the works of Julius Caesar, who used a simple cipher for messages between him and his generals.

The purpose of cryptography in crypto

A blockchain-based cryptocurrency needs some form of encryption to secure its money supply from being stolen by hackers or malicious software. It also allows for the anonymous transfer of funds between individuals without requiring a trusted third party, such as a bank or government institution. Cryptocurrencies are entirely based on cryptographic ideas.

Compared to cash transfers, cryptocurrencies do have another layer of security built into the blockchain: cryptography. The purpose of which is to validate transactions and prevent unauthorized access to the ledger by keeping all information inside a digital file that only authorized people can see. It's kind of like a physical vault (or safe) where you can keep all your money. But, unlike a physical vault, there's also no way to access the safe without a private key or password.

Usage of cryptography in Cryptocurrency

Cryptography is used in several different components of Bitcoin's security model, as well as in other cryptocurrencies.

Bitcoin addresses, which are used to receive and send funds between people on the blockchain, have both public keys and private keys. Only the owner of an address's private key can spend funds sent to the address, and only the owner of an address's public key will be able to receive them.

Every time you send or receive bitcoins, your transaction is signed with the appropriate digital signature using your private key. Since you can't share your private key with the person receiving your bitcoins, they verify that the signature is correct using your public key. The process of sending and receiving bitcoins between addresses is entirely anonymous and doesn't require any personal information (although there are ways to link transactions to identities).

Cryptocurrencies use public-key cryptography in order to prove ownership of addresses and transactions. This is done with a piece of data known as a digital signature, which is obtained using the sender's private key, and attached to the end of every transaction block along with other information about that block. Each new transaction has its own signature, verifying that the sender owns the address that is being used to send the funds. Since only the owner of a private key can create a digital signature for it, this provides a very strong guarantee that nobody else has sent their cryptocurrency to an address other than the one currently being spent from.

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Cryptocurrencies have been revolutionary in their pursuit of merging decentralization with the finance sector. The industry has grown to provide many alternative options to the traditional financial products available, with most of them at a fraction of the cost. Cryptocurrencies have digitized the way we view, use and manage our funds, and it's only the beginning of the digital assets revolution.

What is cryptocurrency?

Cryptocurrency is the blanket term used to describe any digital asset that utilizes blockchain technology or distributed ledger technology to operate. The first cryptocurrency that came into existence was the Bitcoin network, created in 2009 by the mysterious Satoshi Nakamoto.

The cryptocurrency was designed to provide an alternative monetary system to the traditional banking sector, free from politics. Instead of a central authority, Bitcoin operates using a decentralized network of computers that work together to transact and verify any financial transactions using the Bitcoin protocol. For the first time ever people could manage their money without having to rely on a centralized institution.

Since Bitcoin's success, many other cryptocurrencies have emerged, some providing a revised solution to the digital cash system Bitcoin created, while others have brought innovation to the crypto space.

The Ethereum blockchain, as an example, provides the industry with a platform on which developers can create decentralized apps (dapps) merging the app concept with the decentralized nature of blockchain technology.

Cryptocurrency vs traditional currencies

Traditional currencies, also known as fiat currencies, are operated by government institutions while cryptocurrencies are maintained through a network of computers following a specific protocol. While a Federal Reserve typically sits behind a fiat currency, the key players in a cryptocurrency's existence typically involve:

• Core developers, responsible for updating a network's protocol
• Miners, responsible for validating and executing transactions
• Users, the people using the cryptocurrency
• Exchanges and trading platforms, facilitating the trade of these cryptocurrencies.

While governments have free control over printing new money, most cryptocurrencies are created with a hard cap. For instance, Bitcoin was designed with a maximum limit of 21 million coins, meaning that there will only ever be that number in existence. Not all cryptocurrencies have this hard cap though, Ethereum has an infinite supply due to the nature of the platform and the cryptocurrency.

Unlike fiat currencies, Bitcoin and many other cryptocurrencies were designed to be deflationary, with the necessary factors in place to ensure that the value of the currency increases over time (based on simple supply-demand economics).

Another pressing difference between cryptocurrencies and fiat currencies is that cryptocurrencies are still undergoing regulatory processes. While they are not illegal to trade (in most countries), they are not yet considered to be legal tenders (again, in most countries). Regulators around the world are working on a legal framework in which cryptocurrencies can operate in mainstream markets.

How do cryptocurrencies work?

Now that we've covered the basics on what is cryptocurrency, let's take a look at how these digital currencies actually function. First and foremost, through the use of blockchain technology. While not all cryptocurrencies use this technology, most do and we will use it as an example (as the concept is roughly the same).

Blockchain technology explained

Blockchain is best explained as a digital record-keeping system, or a distributed database. All transactions made on the network are stored in a transparent manner for anyone to see, with no way to edit or omit any of the information. All data is stored in blocks, which are added chronologically to a chain, hence the name.

A block will contain information relating to every cryptocurrency transaction, like timestamps of when it took place, the sending and receiving wallet addresses, transactional hash, and amounts. Depending on their size, blocks typically store data for a few hundred to a few thousand transactions. Blocks will then also hold a block hash, a unique identifying number associated with the block, and the hash of the previous block to prove its order.

When companies incorporate blockchain technology into their businesses they will typically use a private network where the information is only transparent to certain users. This is referred to as a "permissioned" blockchain, different from a "permissionless" blockchain used for Bitcoin and other cryptocurrencies.

Cryptocurrency transactions explained

While blockchain forms the backbone of a cryptocurrency network, miners facilitate the transactions. In a process called mining, cryptocurrency transactions are validated and executed, and through cryptocurrency mining new coins are minted. To make this easier to understand, we're going to use an example of Lucy sending Bitcoin to Jane.

From her Bitcoin wallet, Lucy will initiate a transaction to Jane, sending 1 BTC. After entering Jane's wallet address, she will confirm the network fees presented (these are paid directly to the miner for their time and effort), and execute the transaction.

The transaction will then enter a pool of transactions waiting to be executed called a mempool. Miners then compete to be the first to solve a computational puzzle, the winner of which will be rewarded with verifying and executing the next batch of transactions (cryptocurrency mining).

Confirming that each wallet address exists and each sender has the available funds, the miners will collect each of the network fees that the senders paid. The data from the confirmed transactions will then be added to a block and added to the blockchain right after the last published one. For adding a new block to the blockchain, the miner receives a block reward.

This block reward is based on the current rate, which is halved every 210,000 blocks (roughly every 4 years). This is how new Bitcoin enters circulation and the currency is able to maintain a deflationary status.

Jane will then receive a notification to say that she has received 1 BTC, and depending on her wallet will need to wait for 3 - 6 confirmations before being able to access the funds. Each confirmation is when a new block is added to the blockchain, which typically takes 10 minutes.

This process is typical of a proof of work network, used on networks like Bitcoin. This process is also the same whether you are buying crypto from crypto exchanges or sending to a friend.

The only time this differs is when using a cryptocurrency blockchain that utilizes a proof of stake consensus. In this case, instead of miners competing to solve the puzzle (requiring a lot of energy), validators will be selected by the network to conduct the verification process afterwhich this information will be verified and added to the relevant blockchain ledger.

The different types of cryptocurrencies

With tens of thousands of virtual currencies on the market, a number of subcategories have been created. While Bitcoin is a digital cash system providing a store of value and a medium of exchange, not all cryptocurrencies follow this structure.

Cryptocurrencies that are not Bitcoin are referred to as altcoins, (alternative coins), a term coined in the early days when new coins started emerging. Some altcoins are focused on providing heightened privacy, security, or speed while others are created for entertainment and leisure.

There are nine main types of cryptocurrencies, which we'll briefly highlight below:

• Utility, provide access to the platform service
• Payment, used to pay for goods and services within and outside of its network
• Exchange, native to cryptocurrency exchange platforms
• Security, where its usage and issuance are governed by financial regulations
• Stablecoins, digital currencies with prices pegged to fiat currencies
• DeFi tokens, digital currencies used on DeFi (decentralized finance) exchanges
• NFTs, non-fungible tokens representing unique identities that cannot be replicated
• Asset-backed tokens, where their underlying value is backed by a real-world asset

Another category that is gaining popularity around the world is Central Bank Digital Currencies, CBDCs. These digital currencies are operated and maintained by a central bank with the price pegged to the local currency.

What are the benefits of digital currency?

Cryptocurrencies are known for their fast and secure transactions, not limited by borders or government intervention. Below are several highlights that cryptocurrencies bring to the financial sector.

• Decentralized. Eliminating third parties and centralized authority, cryptocurrencies make the transfer of assets possible while reducing costs and time constraints.
• Security. Blockchain provides a transparent and immutable means of storing transactional data ensuring smooth and accountable operations.
• Deflationary. Most cryptocurrencies with a limited supply are designed to be deflationary in nature due to the decreasing supply mechanisms set in place. With basic supply-demand economics, a reduced supply and increased demand drive the price up.
• Reduced transaction fees. Cryptocurrencies provide a much cheaper alternative to sending fiat currencies across borders. With no need to exchange currencies and bypass several middlemen, cryptocurrencies are able to be sent on a peer-to-peer basis in a matter of minutes.
• Diversification. When it comes to investing, cryptocurrencies present a measure of diversification. Considering your risk tolerance and asset allocation, cryptocurrencies could be a part of your investment portfolio.

What are the risks associated with cryptocurrencies?

While there are plenty of benefits, as with any "new" asset class, there are risks to be considered too.

• Market volatility. Cryptocurrencies are prone to bouts of volatility with prices rising and falling dramatically in various frames of time.
• Market manipulation. Some cryptocurrencies might fall victim to a pump-and-dump scheme through no fault of the networks'. These are typically orchestrated by third parties.
• Theft. While blockchains can't typically be hacked, many cryptocurrency exchanges and wallets that don't utilize the necessary security measures can fall prey to hackers. To avoid this ensure that you always stick to a regulated platform with high-security measures.

How does one store cryptocurrency?

Cryptocurrency is stored in a digital wallet, similar to how one would store money at financial institutions only with cryptocurrency you are entirely in control of your funds. From the wallet you can make crypto transactions, store a wide range of cryptocurrency assets and hold your cryptocurrency investments long term.

Each cryptocurrency wallet is specifically designed to hold a certain type of cryptocurrency. For example, you cannot accept Bitcoin in an Ethereum wallet or send Bitcoin Cash to a Bitcoin wallet. Each wallet also comes with a set of public and private keys, the latter of which gives the holder access to the funds.

How to trade cryptocurrencies on cryptocurrency exchanges

Now that you understand what is cryptocurrency, let's cover how to enter the world of crypto assets. Entering the world of cryptocurrencies can be both exciting and rewarding. While we encourage every single person to conduct their own research prior to getting involved, once you're ready to start your journey into the cryptocurrency space, we're here for you.

Crypto exchanges

In order to buy any digital currency, traders will need to utilize cryptocurrency exchanges. These exchanges facilitate the buying and selling of crypto assets, and depending on the structure, often require users to offer some proof of identification before conducting any cryptocurrency transactions.

Decentralized vs centralized

The cryptocurrency market is made up of decentralized exchanges and centralized exchanges. The difference between the two is how they are operated, with centralized exchanges have a central authority. Typically, the centralized ones are more reliable and trustworthy as they require licenses which hold them accountable to certain standards within the financial sector. When looking to trade any digital currency, find an exchange that is regulated and licensed by a financial body.

The Tap app is a mobile app that allows users to buy, sell, trade, store and even earn crypto through a secure wallet infrastructure. Supporting a number of popular cryptocurrencies, users gain access to a wide range of markets. Fully regulated by the Gibraltar Financial Services Commission, the app uses top-of-the-range security technology to ensure that all data and funds are secured at all times.

Open an account

To engage in the cryptocurrency market all one needs to do is create an account. To open an account on Tap simply download the app from the App or Google Play store, enter the details required and complete the KYC process, an international requirement on all reputable digital currency platforms. Users will then gain access to a number of crypto and fiat wallets, with the ability to accumulate a wide range of cryptocurrencies.

From there, users can make cryptocurrency transactions, whether to friends also using the platform, external wallets or even external bank accounts for online payments, such as municipalities. The app offers a modern approach to banking services where funds can be used for real world payments. 

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Decentralized finance, or "DeFi," refers to financial services that provide many of the same features as traditional banks - like earning interest on your money and borrowing from others - but without middlemen who take a fee or charge interest, paperwork, or privacy trade-offs. A chartered accountant and Blockchain do not have much in common, but they are starting to as DeFi and FinTech take over. I

nstead of relying on financial services like banks, users can utilize smart contracts on blockchain. Cryptocurrencies ensuring even more ease of use for DeFi users, providing the hottest speeds, fees, and transparency. Defi and digital currencies are growing in popularity thanks to the perks of Blockchain technology. Let us get more into the concept and how it caters to a larger audience.

The aim and use of DeFi

Decentralized finance is the future of financial services, and it's already here. The aim of DeFi is to provide a decentralized financial services platform that is open and accessible to anyone in the world, using tech like crypto to help advance the everyday life of anyone and any business willing to give decentralization a try.

In the past decade, we've seen a rise in peer-to-peer lending platforms such as Lending Club, Patreon, BTCJam, and an explosion of digital currencies such as Bitcoin and Ethereum.

All of these developments have taken us one step closer to the decentralized future of finance that we've been dreaming about, but there's still more work to be done.

What's wrong and how can DeFi fix it

Many institutions in the financial sector are slow and expensive when it comes to providing basic services like payments. Online lender contracts can charge interest rates as high as 30 percent, and the global remittance industry charges fees that can be as high as 12 percent.

These fees and delays mean some of the most vulnerable individuals of our society are paying the highest prices for financial services when they need them most. While the traditional financial system can be slow and expensive, it doesn't have to be this way. Decentralized finance (DeFi) is an emerging category of services where trust intermediaries such as banks are replaced with cryptographic code and smart contracts, which reduces costs for everyone involved - especially when it comes to international payments.

DeFi is a new category of services that are globally accessible and built on top of blockchain infrastructure, without any charge or barrier to entry. It's also much more secure than traditional financial systems because the technology used isn't connected to a central server that can be hacked. DeFi users smart contracts applications to ensure ease of use and instant transfers of information and funds.

Your money is always yours; it's just moving from one smart contract to another. No permission from an intermediary is required in order to use it. All you need to do is have a cryptocurrency wallet, computer or mobile device, and internet connection like everyone else using DeFi services today.

DeFi isn't coming, it's already here

When you ask yourself, "where is DeFi going?", the answer is simple: everywhere. DeFi can be used from every corner of the world, and it's already available today. Innovation at its finest.

DeFi services are not theoretical. They're already being used by real people today to make real asset payments, earn interest on their digital savings, and borrow money from both friends and strangers, all without ever going through a bank or traditional financial institution. Whether you are investing, a money maker, or an asset holder, the shift to DeFi is inevitable.
Blockchain technology provides the first-ever opportunity for these separate building blocks to come together in order for the entire financial system to work seamlessly without any intermediaries, so it will only get better with time. From an economic standpoint, DeFi offers better rates and all the perks of FinTech. Cryptocurrency assets like Ethereum have seen plenty of investment opportunities arise as DeFi and Blockchain merge.

DeFi pros and cons

In order to get a complete picture of what DeFi is, it's important to understand all the good and bad parts that we are facing now. So let's dive into the details.

DeFi pros:

• The interest rate on savings and money lending is relatively high, just as it would be without intermediaries.
• Financial services are more accessible than in traditional bank systems because there aren't any barriers to entry, like non-existent internet infrastructure or bank account fees.
• Transaction and disruption times are much faster because DeFi transactions can move directly from peer to peer without having to go through intermediaries.

DeFi Cons:

• Some transactions might not be as private due to the public records of smart contracts on a blockchain (keeping that in mind, transparency is always beneficial). This however increases security because fraud or reversal can't happen.
• Access to DeFi services can be limited if you live in a part of the globe where these services aren't supported or don't have high enough adoption rates, as compared to traditional banking systems in developed countries. Regulator issues may also occur.
• There isn't a built-in mechanism for handling consumer disputes between peers because the technology simply wasn't designed with this function in mind.
• It's difficult to understand what you're getting yourself into when joining a DeFi service, since it varies from one application to the next and is based on new technology. This doesn't have to be the case in the future.
  

As of now, it's still the early days for DeFi and there are some challenges to overcome before we can look at it as a real alternative. There's still a lot of work to be done, but it will all pay off in the end.