Increase Intelligent Cryptom Treaties: Revolution of Decentralized Finance

Cryptocurrencies with a revolution of people’s reflections on money and financial transactions. Since Bitcoins to Ethereum, digital currencies have become popular worldwide and offer a safe, decentralized and transparent alternative to traditional fiat currencies. However, with the emergence of new technologies, intelligent contracts are one of the key areas that have seen significant growth. In this article, we are immersed in the role of intelligent contracts in decentralized finances (Defi), we investigate its potential and benefits.

What are intelligent contracts?

The intelligent contracts themselves deal with the terms of the agreement directly in the series of codes. They automate various processes such as transfer of assets or balance debts, without the need for intermediaries such as banks or governments. This decentralized approach eliminates the need for trust, reduces the cost of transaction and increases the speed of transactions.

Decentralized Finance (Defi)

Defi is a subgroup of cryptocurrencies focusing on financial services and applications based on blockchain technology. This allows users to interact directly with each other without involving traditional financial institutions. Defi has become more popular in recent years and offers many innovative products and services.

The role of intelligent contracts in Defi

Intelligent contracts play a decisive role in Defi by allowing various financial functions, for example:

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• Decentralized loans

  : Intelligent contracts allow users to borrow and borrow their cryptocurrency without relying on traditional banks or creditors.

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• Tokenization : Intelligent contracts can to tokens tools such as real estate or art, allowing them to buy, sell and trade as commodities.

Advantages of smart contracts in Defi

The use of intelligent contractions in Defi has many advantages:

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• Enhanced transparency : Intelligent contracts provide a transparent record of all transactions that eliminate the need for intermediaries to control or organize transactions.

• Increased security : Intelligent contracts use cryptographic techniques to ensure safe and counterfeit implementation.

• Decentralization : Intelligent contracts enable decentralized decisions processes, thereby reducing dependence on centralized organs.

Remarkable examples

Some of the remarkable examples of intelligent contracts are as follows:

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Common : Decentralized Loan Platform, which uses a compound coin token (Comp).

• MakerDao : Decentralized Stablacoin project, which relies on intelligent contracts on its original currency.

• Aave : Decentralized credit protocol that uses intelligent contracts to facilitate loans and loans.

Calls and Restrictions

While intelligent contracts are a great promise in Defi, there are still many challenges and restrictions:

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• Scalability problems : Scalability of smart contract systems can be a significant challenge, especially for extensive applications.

• Safety risks : As with all decentralized systems, there is a risk of violation or handling for safety.

Conclusion

Intelligent contracts with a revolution in the field of Defi, which allowed innovative financial products and services that were previously unimaginable.