DEFI BANKING PART 1

Cryptocurrency requires a new way of thinking that requires levels of understanding that we’re just now getting accustomed to, but once we grab the idea of blockchain technology we can move in peace. Please don’t tell yourself that you can’t understand it, just tell yourself that you can! Because you can.

Look …. God already knew you would be alive in 2022, He knew what age you would be, He knew that blockchain technology would be around in 2022, and yet He still had you born in the year that you were born in, knowing full well that He had already given you the necessary wisdom for this season of your life!🤷🏾‍♀️ So your ‘I-can’t-understand-this-crypto-and-blockchain-stuff-it’s-too-hard’ excuse, is hereby rendered null and void, lol! That ship has already sailed.😩

So let’s dive into DeFi banking. Do you remember when we discussed Crypto exchanges and the KYC (know your customer) verification process, I mentioned that some crypto exchanges would allow you to remain nameless or anonymous? That’s what we’re talking about this week but in order to explain DEFI banking, I’ll have to first explain CEFI banking so that it’s easier to grasp.

CEFI banking (or centralized banking) refers to the banks that are a part of the traditional banking system that we are familiar with, and are all tied to a Central Bank, e.g. Wells Fargo, JP Morgan Chase, Bank of America, etc. These banks are all tied to the United States Federal Reserve Bank (the US government). That is centralized banking or CeFI banking.

DEFI banking (or decentralized banking) refers to the banking system that is not tied to the United States government, the IRS, or the Federal Reserve Bank. The DeFi banking system isn’t tied to any President, Prime Minister or traditional central banking authority. It is set up apart from any government or governing authority. DeFi is banking for the people by the people and is based on peer-to-peer lending.

We will get into more details tomorrow but just know that DeFi banking has appeared on the scene and it is changing the way banking is done!

Deuteronomy 20:4 - For the LORD your God is going with you! He will fight for you against your enemies, and He will give you victory!

See y’all tomorrow.😉

Copyright ©2022 Sherma Jacqueline Felix, BLACK ADVANTAGE Publishing™ . The author shall neither be liable nor responsible for any loss or damage allegedly arising from any information or suggestions in this post.