Cardano can bring stability and reliability to the World of DeFi

Decentralized Finance (DeFi) is the most interesting movement in the whole of crypto right now. At the same time, it is the synonym for high profits but also for high risk. It is not a good thing. DeFi must be a stable and reliable space in the first place.

What is DeFi and why do we need it?

As the name suggests, Decentralized Finance is a movement that aims to recreate traditional financial and banking services without centralized technologies. It is a natural continuation of Bitcoin’s success. Blockchain, in general, is a trust machine that is able to act the role of a trusted third party. In the traditional world, we trust many third parties like banks that are represented by people. The whole cryptocurrency space strives to hand over trust to distributed machines. To be more precise, to the source codes of distributed protocols and infrastructures, that are maintained by plenty of independent people. The power and influence of individuals are weakened by establishing a collective of validators that automatically execute all valid user operations.

DeFi needs more functionalities than just sending transactions between two addresses. Smart contracts enable us to define a set of rules and conditions and automatically execute them based on the real development…