{"id":63190,"date":"2025-09-12T15:07:39","date_gmt":"2025-09-12T09:37:39","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=63190"},"modified":"2025-09-12T15:49:17","modified_gmt":"2025-09-12T10:19:17","slug":"decentralised-finance-defi","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/decentralised-finance-defi\/","title":{"rendered":"Decentralised Finance (DeFi)"},"content":{"rendered":"<h2><b>Decentralised Finance Latest News<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">There has been heightened concern in recent days about the misuse of Decentralised Finance (DeFi) for illicit activities, notably by terrorist groups seeking to raise finances, build infrastructure, or expand their networks.<\/span><\/p>\n<h2><b>About Decentralised Finance<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">DeFi is an <\/span><b>emerging financial system using blockchain and cryptocurrencies <\/b><span style=\"font-weight: 400;\">to enable <\/span><b>direct transactions between individuals and businesses<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">DeFi platforms <\/span><b>use a combination of existing blockchains, stablecoins, software<\/b><span style=\"font-weight: 400;\">, and <\/span><b>hardware<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It<\/span><b> offers financial products and services <\/b><span style=\"font-weight: 400;\">enabling saving, investing, lending, remittance, insurance contracts, etc., <\/span><b>without the intermediation of traditional financial institutions <\/b><span style=\"font-weight: 400;\">like banking.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The<\/span><b> transactions take place through smart contracts, open protocols, <\/b><span style=\"font-weight: 400;\">and <\/span><b>decentralised applications (D-Apps)<\/b><span style=\"font-weight: 400;\">, allowing <\/span><b>direct peer-to-peer transactions <\/b><span style=\"font-weight: 400;\">without intermediation.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>A digital wallet<\/b><span style=\"font-weight: 400;\">, when i<\/span><b>ntegrated with DeFi, serves as a gateway, <\/b><span style=\"font-weight: 400;\">bypassing the banking network.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Access to the DeFi service does not warrant<\/b><span style=\"font-weight: 400;\"> the <\/span><b>opening of an account or identity verification.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>A customer can <\/b><span style=\"font-weight: 400;\">register with a password and <\/span><b>create several crypto wallets.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Most wallets do not ask for an address, phone number<\/b><span style=\"font-weight: 400;\">, or email verification, and <\/span><b>one can use different DeFi exchanges or DeFi lending and borrowing platforms.<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This system <\/span><b>eliminates intermediaries <\/b><span style=\"font-weight: 400;\">like banks and other financial service companies. These companies charge businesses and customers for using their services, which are necessary in the current system.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">By eliminating intermediaries, DeFi <\/span><b>aims to reduce costs and speed up processes.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Unlike centralized financial institutions<\/b><span style=\"font-weight: 400;\"> such as banks, exchanges or brokerage firms, <\/span><b>DeFi systems provide uncensored access for everyone.<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In a DeFi system,<\/span><b> individual traders can easily store and transfer funds in a digital wallet, <\/b><span style=\"font-weight: 400;\">which is <\/span><b>directly accessible at any time, <\/b><span style=\"font-weight: 400;\">with no intermediary.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\">Overall, DeFi <b style=\"font-size: inherit;\">offers users more control over their money.<\/b><span style=\"font-weight: 400;\"> Financial <\/span><b style=\"font-size: inherit;\">assets can be transferred <\/b><span style=\"font-weight: 400;\">or purchased <\/span><b style=\"font-size: inherit;\">in a matter of seconds or minutes.<\/b><\/li>\n<\/ul>\n<p><b>Source<\/b><span style=\"font-weight: 400;\">: <\/span><a href=\"https:\/\/www.deccanherald.com\/opinion\/defi-boom-brings-new-national-security-risks-3722039\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">DH<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Decentralised Finance is an emerging financial system using blockchain and cryptocurrencies to enable direct transactions between individuals and businesses.  Read more about Decentralised Finance (DeFi), Meaning, Aim, Features, Latest News<\/p>\n","protected":false},"author":23,"featured_media":63202,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[2649],"class_list":{"0":"post-63190","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-decentralised-finance-defi","9":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/63190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=63190"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/63190\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/63202"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=63190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=63190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=63190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}