Decentralized Finance (DeFi) on Ethereum: The Future of Finance?

Decentralized finance, or “DeFi” for short, has taken the crypto and blockchain world by storm. However, its recent revival has obscured its roots in the bubble era of 2017. While everyone and their dog was doing an “initial coin offering,” or ICO, some companies saw the potential of blockchain as much more than a quick price gain. These pioneers envisioned a world where financial applications from trading to savings to banking to insurance would be possible on the blockchain without any intermediaries.

To understand the potential of this revolution, imagine if you had access to a savings account that earned 10% annually in USD but without a bank and with virtually no risk of funding. Imagine you could trade crop insurance with a Ghanaian farmer sitting in your office in Tokyo. Imagine being a market maker and being able to get a fee as a percentage of what each castle wants. Sounds too good to be true? This is not. This future is already here.

The Building Blocks of D-Fi

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