A financial system that will completely change the way banks and financial institutions work in the future — yes, that is possible thanks to Blockchain technology. Imagine financial services like loans, savings, and insurance being available to any user with a smartphone and Internet connectivity.
Also termed as DeFi, Decentralized Finance is the cryptocurrency-powered financial system that can function without the presence of any banks or financial intermediaries. It is purely operated using smart contracts. In other words, DeFi financial tools can provide the services of the current centralized finance -but in a completely transparent and decentralized mode.
How do DeFi tools differ from traditional financial instruments?
Since the year 2020, the DeFi domain has been attracting investments (in billions of dollars) and has witnessed healthy growth. Most investments have been driven by cryptocurrency companies using the Ethereum blockchain technology.
Among the many innovations, the decentralized technology app (or dApp) is a user-friendly mobile app that is completely decentralized. There are several dApps designed to perform future-focused financial transactions like an automated loan agreement between two parties located in different parts of the world.
Here are some basic differences between DeFi tools and traditional bank-delivered financial instruments:
● Smart contracts
Smart contracts are software programs that run on Blockchain technology. These contracts are automatically executed upon fulfillment of defined conditions. Essentially, smart contracts can be used to enable advanced financial capability — in addition to simply enabling cryptocurrency payments.
● Decentralized operations
In the DeFi domain, there is no single central authority that is overseeing the financial operations. The necessary rules are written into the smart contract program, which once deployed as a dApp on the Blockchain can run on their own without any human intervention.
How Bytus is enabling Decentralized Finance
Launched by the digital solutions provider, Global Digital Payment, Bytus is an all-in-one cryptocurrency-driven ecosystem that is enabling DeFi through faster digital payments and conversion between fiat- and crypto-currencies.
On its part, the Bytus ecosystem has a series of financial tools that can facilitate decentralized finance for the future:
● Bytus Token
Backed by Ethereum, the Bytus Token is the basic medium of exchange in the Bytus ecosystem. Through efficient crypto mining using digital wallets, users can make transactions using Bytus tokens — including sending (or receiving) funds or for contactless payment for goods or services.
● Bytus Private Blockchain
Based on the efficient Graphene chain protocol, the Bytus Private Blockchain is an open-source code that ensures transparency and security of all transactions in the Bytus ecosystem. This tool has enabled hundreds to thousands of global retailers and merchants to sell their retail products on the Bytus ecosystem.
● Bytus Wallet
This is the digital wallet tool in the Bytus ecosystem that supports many cryptocurrencies including Bitcoin and Ethereum. It is also enabled with the instant conversion from cryptocurrencies to fiat money.
● Bytus Crypto Bank
The Bytus Crypto Bank is essential, a user-friendly mobile app that provides its users with all the functionalities provided by any standard mobile banking app.
With DeFi among the fastest-growing segments in the crypto domain, Bytus is revolutionizing the future of finances with its range of financial tools.