Decentralized finance—often called “DeFi”—refers to the shift from traditional, centralized financial systems to peer-to-peer finance enabled by decentralized technologies built on the Ethereum blockchain. From lending and borrowing platforms to stablecoins and tokenized BTC, the DeFi ecosystem has launched an expansive network of integrated protocols and financial instruments.

Now with over $13 billion worth of value locked in Ethereum smart contracts, decentralized finance has emerged as the most active sector in the blockchain space, with a wide range of use cases for individuals, developers, and institutions.

Whereas our traditional financial system runs on centralized infrastructure that is managed by central authorities, institutions, and intermediaries, decentralized finance is powered by code that is running on the decentralized infrastructure of the Ethereum blockchain. By deploying immutable smart contracts on Ethereum, DeFi developers can launch financial protocols and platforms that run exactly as programmed and that are available to anyone with an Internet connection.

The breakthrough of DeFi is that crypto assets can now be put to use in ways not possible with fiat or “real world” assets. Decentralized exchanges, synthetic assets, and flash loans are completely novel applications that can only exist on blockchains.

This paradigm shift in financial infrastructure presents a number of advantages with regard to risk, trust, and opportunity.

From DAOs to synthetic assets, decentralized finance protocols have unlocked a world of new economic activity and opportunity for users across the globe. The comprehensive list below covers some of the most popular DeFi applications and protocols in use today:

Asset management:

With DeFi protocols, you are the custodian of your own crypto funds. Crypto wallets like MetaMask, Gnosis Safe, and Argent help you easily and securely interact with decentralized applications to do everything from buying, selling, and transferring crypto to earning interest on your digital assets.

In the DeFi space, you own your data: MetaMask, for example, stores your seed phrase, passwords, and private keys in an encrypted format locally on your device so that only you have access to your accounts and data.

Compliance and KYT:

In traditional finance, compliance around anti-money laundering (AML) and countering-the-financing-of-terrorism (CFT) relies on know-your-customer (KYC) guidelines. In the DeFi space, Ethereum’s decentralized infrastructure enables next-generation compliance analysis around the behavior of participating addresses rather than participant identity.

These know-your-transaction (KYT) mechanisms help assess risk in real time and protect against fraud and financial crimes. Kyber Network’s Receive Address Whitelisting (RAW) is one example of a KYT solution being used by a number of popular DeFi protocols.

DAOs:

A DAO is a decentralized autonomous organization that cooperates according to transparent rules encoded on the Ethereum blockchain, eliminating the need for a centralized, administrative entity. Several popular protocols in the DeFi space—such as MakerDAO, Compound Finance, Synthetix, yearn.finance—have launched DAOs to fundraise, manage financial operations decentralization governance decisions transparently on Ethereum. Several other popular protocols are currently in development as DAOs including Aave , InstaDapp , Nexus Mutual , Set Protocol , Balancer Labs , StakeHound .

dYdX . Melonport AG . MakerDAO is currently the largest DAO by total value locked (TVL), with over $1 billion worth of ETH locked in its Maker Vaults.

Conclusion – What Are Good Bitcoin Alternatives?

Bitcoin alternatives are becoming more popular as people look for ways to invest their money outside of traditional markets. Decentralized finance protocols offer a unique opportunity for users to access a wide range of financial instruments and platforms without having to go through traditional intermediaries. With over $13 billion worth of value locked in Ethereum smart contracts, decentralized finance has emerged as the most active sector in the blockchain space with a wide range of use cases for individuals developers institutions.

When it comes to Bitcoin, the term “liquidations” refers to the process of selling off Bitcoin holdings in order to cash out of position. In other words, liquidations are when Bitcoin investors sell their digital currency in order to “cash out” and take their profits.

There are a few different reasons why investors might choose to liquidate their Bitcoin holdings. For some, it may be simply because they’ve made a profit and they want to cash in on those earnings.

Others may be selling off their Bitcoin in order to free up capital for other investments. And still others may be liquidating their holdings because they believe that the price of Bitcoin is about to drop and they want to avoid taking a loss.

Whatever the reason, when investors sell their Bitcoin it typically has a negative impact on the price of the digital currency. That’s because when there is more selling pressure than buying pressure, it creates downward pressure on prices.

So, when large investors or groUPS of investors choose to sell off their Bitcoin holdings all at once, it can cause sharp declines in the price of BTC.

These sorts of price declines are often referred to as “flash crashes” or “ corrections .” And while they can be scary for investors who are holding onto Bitcoin, they also present an opportunity for those who are looking to buy BTC at a discount.

Of course, it’s important to remember that no one knows for sure where the price of Bitcoin will go next. So, if you’re thinking about buying Bitcoin after a sharp decline, make sure you do your research and only invest an amount that you’re comfortable losing.

Bitcoin liquidations can refer to two different things: 1) The act of selling bitcoin holdings in order to cash out and take profits, or 2) When big investors sell their bitcoin all at once, causing sharp declines in prices (flash crashes or corrections). No one knows for sure where the price of bitcoin will go next, so if you’re thinking about buying after a decline, make sure you do your research first!.

When it comes to Bitcoin, NFL players are cashing in. While some team owners and league officials have been critical of the cryptocurrency, players have been quick to embrace it as a way to make some extra cash.

In fact, a number of NFL players have even started investing in Bitcoin-related businesses.

One of the most notable examples is Denver Broncos linebacker Von Miller. In 2014, Miller partnered with a company called GAW Miners to launch a Bitcoin mining operation.

The venture proved to be quite profitable for Miller, as he reportedly made over $2 million in just a few months.

Other players who have invested in Bitcoin include Seattle Seahawks safety Earl Thomas and Miami Dolphins wide receiver Kenny Stills. Both Thomas and Stills have invested in the cryptocurrency exchange Coinbase.

So what exactly are NFL players getting paid in Bitcoin? While there are a few different ways that players can earn Bitcoin, one of the most common is through signing bonuses. For example, when Stills signed with the Dolphins in 2015, he was given a $100,000 signing bonus that was paid out in Bitcoin.

While Bitcoin may not be mainstream just yet, it appears that NFL players are ahead of the curve when it comes to cashing in on the cryptocurrency craze. With more and more players getting involved in Bitcoin, it seems likely that we will see even more widespread adoption of the digital currency within the NFL community in the near future.

J.P.

Morgan Chase & Co. (JPM) CEO Jamie Dimon said he regretted calling bitcoin a “fraud.”.

“The blockchain is real. You can have crypto yen and dollars and stuff like that,” Dimon said at the New York Times DealBook conference on Wednesday. ” ICOs . you got to look at every one individually.

Dimon’s original comments on bitcoin, made at a banking industry conference in September, caused a stir in the digital currency world. He called bitcoin a “fraud” and said he would fire any employee trading it for being “stupid.”

“It’s just not a real thing, eventually it will be closed,” Dimon said at the time.

On Wednesday, Dimon acknowledged that he may have been too hasty in his criticism of bitcoin.

“I regret making them,” he said of his earlier comments.

Dimon’s change of heart comes as the price of bitcoin has surged to new highs in recent weeks, topping $11,000 on Wednesday. The digital currency has gained more mainstream attention as it becomes more widely accepted by businesses and investors.

Despite his about-face on bitcoin, Dimon still isn’t ready to fully embrace the digital currency. He said he doesn’t like the way it trades and that it’s used by criminals.

But he conceded that blockchain technology underlying bitcoin is here to stay.