DeFi

DeFi is a term that you will hear a lot about during research for cryptocurrencies. It simply stands for Decentralized Finance and covers a wide range of ways to invest in coins. Being decentralized, it simply means that a number of entities will hold the information about the transactions at hand which gives no one person or corporation control of the transactions.

DeFi can be used in a wide variety of applications, such as loans. Through different exchange servers, you can take out loans of cryptocurrency, or even put your own crypto into the server to be loaned out and make some interest on your funds. DeFi can also set the platform for sports betting (using smart contracts). For example; if you wanted to bet on a hockey game it could be as simple as if team XYZ beats team ABC, then payout at the following rate.