Blockchain, Cryptocurrency and DeFi

What is Blockchain?

Imagine a shared, digital ledger that everyone can access and see, but no one can alter. That's essentially what a blockchain is. It's a database that stores information in blocks, which are linked together in a chronological chain. Each block contains data (like transactions or asset ownership) along with a special code called a hash that connects it to the previous block. This creates a secure, tamper-proof record of data, as modifying any block would require changing all subsequent blocks, which is nearly impossible.

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What is Cryptocurrency?

Cryptocurrency, also known as "crypto" for short, is a Digital Currency designed to work as a medium of exchange through a computer network that isn't reliant on any central authority, like a government or bank, to uphold or maintain it. Think of it as digital cash independent of traditional financial institutions.

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What is DeFi?

DeFi, or Decentralized Finance, refers to a set of financial services and applications built on blockchain technology. DeFi is an exciting and rapidly evolving landscape within the cryptocurrency world. It essentially aims to replicate and even improve upon traditional financial services, but without the need for centralized institutions like banks or intermediaries. This is achieved through the power of blockchain technology and smart contracts. Common DeFi services include decentralized exchanges (DEXs), lending and borrowing platforms, yield farming, decentralized insurance, and more. DeFi has gained significant attention and popularity for its potential to provide financial services in a more inclusive, transparent, and efficient manner.

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