June 14, 2021

What is DeFi? 10 facts about DeFi or 10 differences between DeFi and ICO

Once upon a time, well, or maybe quite recently, then start from your own counting system historical chronicle, smart contracts for ICOmade a splash. And throughout the entire period of development of the cryptocurrency industry, this method of collecting funds was the main advantage of the blockchain. But in life, nothing can be eternal. New technologies are replacing, one economic formation is changing another - and ICOs are being replaced by decentralized finance, or simply DeFi.

Back in 2019, the network was bubbling over the “newthe dynamics that revived the cryptocurrency industry, ”as Forbes dubbed decentralized finance. And since then, everyone, everyone, has been obsessed with DeFi. Suffice it to recall that the same thing happened with the ICO in 2017. Big players rushed to issue their tokens, mainly on the Ethereum blockchain. Then the industry expanded by many billions of dollars. But should we expect similar dynamics from decentralized finance? Who is your DeFi anyway?

DeFi stands for Decentralizedfinance (Decentralized Finance). It is a component of the cryptocurrency ecosystem that specializes in the use of financial services such as loans, credits, margin trading, and more. Services are accessed through Dapps - decentralized applications. In the cryptosphere, this set of products replaces banking structures, insurance services, bonds and other financial instruments inherent in the traditional economy.

Today we decided to talk about a really relevant topic. We present to your attention 10 differences between De-Fi and ICO.