What is defy? Can I use it to add interest to my cryptocurrency holdings? Is it risky, and will it really change the financial future as we know it? Well, stick here to the white crypto board. On Tuesday we will answer these and other questions. Hi, I'm nate martin, from bitcoins dot com ninety-nine and welcome to Tuesday's crypto whiteboard, where we take complex cryptocurrency topics, break them down and translate them into simple language before we start.
Today's topic is financial division or contempt. Definitely. If you watch our previous videos, you already know that bitcoin is a currency that can be controlled by any major bank or government, it can be transferred to anyone from anyone in the world without the need for a bank or financial institution. Bitcoin is a shared currency, and if you are just starting out, you may want to hold our own. What is the bitcoin video before moving on? However, transferring money is only the first step in building a financial system. Apart from remittances, there are a variety of services we use today, for example, loans, savings programs, insurance and stock markets are all services that are funded and together form our financial system today, our financial system and stock markets. all its services are fully integrated. Banks, stock markets, insurance companies and other financial institutions all have a person in charge, whether it is a company or not. Controls and provides these services. This medium financial system, or short cfi, has risks, mismanagement, fraud and corruption to name a few. But what if we could distribute the entire financial system in the same way bitcoin issued money? Well, that's exactly what defy is all about. Defy is a term given to financial services that do not have a centralized authority or someone in charge who uses funds classified as certain cryptocurrencies that can be set up for default activities. We can build trades, lending services, insurance companies and other organizations that are not owned and controlled by anyone. Confused, do not worry, we will break it down to build a national budget. The first thing we need is infrastructure to plan and run distributed services. Fortunately for us, ethereum does just that. Ethereum is a platform, create your own platform? Writing space-divided programs, also known as location-specific applications or depth. Ours, what the ethereum video describes ethereum in detail. But for now, we will just say that by using ethereum, we can write automated code, also known as smart contracts that govern any financial service we would like to create in a separate way for people. This means that we can determine the rules for how a particular service will operate. And once we remove those rules from the ethereum network, we no longer have control over them. They do not change. Once we have an effective system in place, such as the theory of creating international programs, we can begin to build our own international financial system. Now let's look at some of the building blocks. The first thing that needs to be done by any financial system is, of course, money. You may be wondering, why not use bitcoin or another, which is ethereum currency, well, in terms of bitcoin, when it is really fragmented. It has only basic configurable functionality and is not compatible with the ethereum platform. On the other hand, it is consistent and orderly. However, it is also very flexible. If we are looking to build reliable financial resources that people will want to use, we will need a stable financial model to operate within this system. This is where stable coins come in. Stable cryptocurrencies are attached to real world assets, usually large currencies, such as usdollar .Our video, which stable currencies explains in detail how to make stable currencies, and what are the different types of stable currencies. Be sure to check it out for more information on the objection, we will want to use a stable currency that does not use savings to keep the anchor, as this will require some kind of middle authority. That is where death ends. Die is a widely distributed cryptocurrency paid for by the value of u.s.dollar, meaning that one mortal equals one dollar. Unlike other popular stable currencies, their value is directly supported by us, the dollar reserves die is supported by crypto collaterals that can be viewed publicly on the ethereum blockchain. The dye is called dover collateralized, which means that if you get stuck in a deposit, a one-dollar ether, you can borrow a sixty-six cents worth of property as soon as you want your return, just pay for the borrowed dye. And ether will be released if you do not have ether to close it as security. Don't just buy a die on the exchange, because death is more than a guarantee, even if the price fluctuates excessively, the value of the lot. Ether that supports diane circulation will probably remain at 100 percent or more. In fact, a stable dye coin is actually a smart contract that lives on the ethereum platform. This makes the dye truly stable coin and is separate from the world, which cannot be closed or tested. Thus, it is a complete form of money for some contemptuous services. Now that our financial system is stable, dedicated to the people, it is time to create more resources. The first use case that we will discuss in real estate transactions, or dex, is for sure. Dex operates by a set of smart rules or contracts that allow users to buy, sell or trade-in secret currencies. Just like death. They also live in the ether
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