Understanding Cryptocurrency: What’s the Hype About?
When we say cryptocurrency, you might associate it with multiple things: confusion, money you can’t touch,
Decentralized finance (DeFi) is slowly but surely replacing the need for traditional financial institutions. Here we will explore why this is happening, and what it means for people like you.
Decentralized finance is exactly what it sounds like: a financial system that is not reliant on any one central entity –a national bank for example– but instead based on the interaction between two primary parties governed by blockchain technology and smart contracts. This system, focused on the two primary parties involved, is helping individuals overcome the shortcomings associated with centralized intermediaries.
DeFi is implemented through a variety of products and services which operate on decentralized applications (dApps). These applications work by using a peer-to-peer (P2P) network through the power of blockchain technology. DeFi services provide many ways to earn a passive income such as lending, staking, and yield farming, giving people a new alternative to conventional financial services and economic opportunities.
Another reason that more people are choosing decentralized financial options is that decentralized markets represent a more transparent and secure alternative to regular banks, using distributed ledger technology to create the unique specifications for a secure and transparent system.
DeFi products give all individuals the ability to manage their assets directly and enjoy equal access to certain facets of the financial market that may not be available to them in the conventional system, like loans for example – DeFi loans don’t require credit checks or income qualifications. Additionally, DeFi loans, as well as all other DeFi services, are more cost-effective for all involved parties since they eliminate the need for the intervention of third parties to moderate the transactions.
Equal access, transparency, and security in the financial market
At Magic Square, we aim to improve the quality and security of cryptocurrencies and decentralized applications to propel their integration into everyday life. The use of DeFi and dApps provides financial solutions to create a more accessible and secure network. This is particularly important for the billions of financially excluded individuals who are unbanked in low-income economies, have no account ownership, and are unable to access financial services. Magic Square adopts the vision that crypto-applications and decentralized networks will become a widespread alternative and enhance a new level of user experience in the industry.
DeFi has many beneficial properties and offers users a flexible and fluid process with less financial censorship. Users can move their assets freely and access any transactional information with ease. With the power of DeFi, we aim to ameliorate the associated barriers and limitations of acquiring financial services with traditional intermediaries.
The simple way to maximize your coins
In this emerging decentralized market, DeFi can help crypto-users handle their digital assets and make the most of bundles. Magic Square recognizes the creativity and utility of dApps which help users manage liquidity, receive loans, and access custody services. Our Magic Store provides several DeFi solutions that are fully integrated and interactive that support several protocols and crypto-currencies. Users can earn more income using AMMs and liquidity pools to optimize token earnings and generate passive income.
We aim to build a convenient, accessible, and secure network for users