Bitcoin’s lofty valuation and manic price swings receive intense news coverage, but Ethereum may provide the foundation to build an alternative worldwide financial system.
Ethereum, the world’s second most popular cryptocurrency, has generated innovative financial products that could lead to decentralized finance, called “DeFi” in crypto circles, allowing for peer-to-peer transactions without using a commercial bank.
Founder of Ethereum, Vitalik Buterin during TechCrunch Disrupt London 2015 – Day 2 at Copper Box Arena on December 8, 2015 in London, England. Buterin’s Ethereum holds just surpassed $1 billion, making him the youngest crypto billionaire in the world at age 27.
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“DeFi uses smart contracts to create protocols that replicate existing financial services in a more open, interoperable, and transparent way,” Dr. Fabian Schär said in a research report published by the St.
Louis Federal Reserve Bank.
“DeFi still is a niche market with certain risks but it also has interesting properties in terms of efficiency, transparency, accessibility, and composability,” he said....read more...