With the advent of the information age, investment seems to be the best way for young people to get “income after sleep”. After 80, after 90, after 00, after 00, after 80, after 80, after 90, after 00, after 00, after 80, after 80, after 90, after 00, after 00, after 20, after 20, after 20, after 20, after 00, after 20, after 20, after. However, these methods are different from traditional investment methods. They are more willing to invest on the Internet, and they are not willing to go to the bank to understand investment and financial products. This also shows that the investment and financing online is often more attractive than offline, and the Internet is gradually strong, many people can make investment and financing of related products through the app on the mobile terminal of mobile phones. Therefore, most of the investment and loan services in the financial industry now show a mobile trend.
According to the survey and statistics, by 2018, nearly 19 top 20 Internet giants in China had strategically arranged their financial businesses. For example, the business of Alipay, balance treasure, flower and so on launched by ant gold clothing has been widely applied in the global payment business. Among them, the balance treasure related business has accumulated up to 170 billion of revenue in just 5 years. At present, ant gold clothing has become the first payment platform in the field of payment.
Although Internet finance promotes the financial business to move, however, in the process of practice, there are also many problems, such as the P2P platform business affecting the bank’s original reputation. On January 22, the notice on immediately stopping cooperation with non compliant Payment institutions was issued. Due to the frequent risk events of P2P online loan platform, involving customer groups and large amount of capital loss, it attracted widespread attention of the society and public opinion. It shows that there are still some problems in Internet finance, such as transaction security, investment risk and so on.
In recent years, with the rapid development of financial technology, people have put forward more demands for high-tech enabling financial services. Internet giants such as Google and IBM have made great achievements in the development of financial science and technology by using artificial intelligence. In 2019, the blockchain returned to the normal track. Based on the underlying development technology of the blockchain, DFI distributed finance has become the focus of many industries.
So, what is defi distributed finance? What are the benefits for us?
1、 What is profi
Defi is the abbreviation of decentralized Finance (), also known as open finance. It actually meansThe decentralization protocol used to build an open financial system aims to enable anyone in the world to conduct financial activities anytime, anywhere。
2019 is the second recovery period of blockchain, and the distributed finance of DFI is also booming, which is considered as a“New financial revolution” Due to the unique characteristics of blockchain technology, decentralization and distributed accounting play an absolute advantage in financial services. Therefore, defi distributed finance solves the disadvantages of traditional Internet finance. In the existing financial system, financial services are mainly controlled and regulated by the central system, whether it is the most basic deposit and withdrawal transfer, or loan or derivative transaction. Profi wants to go throughDistributed open source protocol establishes a transparent, accessible and inclusive point-to-point financial systemTo minimize the risk of trust and make it easier for participants to obtain financing.
For the distributed finance of DFI, once all financial service platforms are decentralized, the transaction mode will also change the composition layout, which means that the distributed transaction of blockchain technology can be open throughout the network, and can be traced, which saves the investment cost while dispersing the investment risk, and diverts part of the capacity to avoid the thunderstorm event similar to P2P platform It happened.
2、 Features of DFI distributed Finance
Driven by the mobile Internet, users have put forward the “trustworthy” demand for financial services. In order to solve this problem, the concept of DFI distributed finance came into being. However,Based on the development of blockchain technology, the problems of capacity, risk resistance and cost reduction have not been completely solved。 At present, defi distributed financial products have become an exploration of the application value of financial technology for enterprises and experts in the future.
Compared with the traditional centralized financial system, defi distributed finance has the following characteristics:
From the perspective of user experience effect,Internet Finance in terms of product positioning does not solve user needs, such as trust. However, as a user, the stability and security of the platform are the most important factors to consider. The centralized financial service platform can relatively avoid the risk of running away for users. At the same time, the distributed data transaction can ensure the safety and traceability of data, making users more confident to choose the decentralized financial service platform in investment.
From the perspective of application scenarios,As the underlying infrastructure, we can issue “pass” for different suppliers of the same product, through which we can obtain their own financing channels and realize supply chain finance.
From the perspective of economic valueCompared with the traditional Internet finance, DFI distributed finance is more about trading on the chain, eliminating all kinds of intermediate links. Individuals with asset management needs do not need to trust any intermediary institutions. New trust is rebuilt on machines and codes. All protocols are open-source, so anyone can cooperate to build new financial products on protocols, and accelerate finance under the network effect Innovation.
From the above three points of view, defi distributed finance is transforming and upgrading from mobile to digital, which can not only meet all kinds of needs of users, but also provide more financial application scenarios. From simple payment, financial management, etc., it provides convenient security guarantee for opening up all links of financial services and solving enterprise financial services.
3、 Can defi distributed finance really be realized?
In the development of blockchain technology, there are ups and downs along the way, so many new concepts have emerged on the basis of them. However, up to now, these concepts with theoretical guidance have not been recognized by the public in real life, nor have corresponding product applications been implemented.
One sideFrom bitcoin point-to-point payment, in fact, there are many DFI distributed financial products. To the application stage of Ethereum smart contract, DFI distributed financial products are more used in DAPP, including financial derivatives and decentralized loans. However, these application products do not highlight their advantages.
Because, at present, the development of blockchain technology is still in its infancy and has not been widely used in real life. At the same time, there are still many technologies that are not mature enough. For example, in 5g network, if the network speed is not fast enough, even if a solution for capacity is proposed, fast payment transaction cannot be realized.
On the other handAs a financial industry, there must be regulatory risks. However, technology is the key factor. Only when technology itself can support the whole financial activities, can we unload the burden of regulation.
However, the technology development is not mature at this stage. Although many investors in the market agree with this concept and think this is the trend of financial development in the future, the current market is unstable and the technology is not mature. Even if there is any higher evaluation, it has no practical effect. However, defi distributed finance provides a direction for future financial services to explore.
Technology promotes economic development and helps the times move forward. Blockchain technology is the only one that can achieve wide application and landing, promote the prosperity and development of the financial industry, and truly realize the application value of DFI distributed finance.