What is DeFi?

If you’ve read all of the information in the Crypto and Blockchain Basics section, then you should have a basic understanding of the difference between centralized and decentralized ledgers.
As covered previously, the blockchain has many different applications across different fields, so in this next section, we’re going to focus on the financial applications specifically.
To understand DeFi, let’s start with TradFi. TradFi, or traditional finance, is what most people typically think of when they think of finance and investing: brokers, stocks, banks, Wall Street, and so on. This is the financial industry that has existed through our whole lifetimes and which is controlled by centralized actors. Consider that if you want to trade a stock, you have to go through a broker. You’re not doing this directly yourself, and you’re holding those stocks in a custodian account that is managed by another party. Banks and corporations are there every step of the way with their own incentives to make money by taking a cut of your assets and charging you fees.
Enter DeFi. DeFi, or decentralized finance, is a financial system that cuts out the middlemen and exists on the blockchain. This is the system where you are in control of your wallet and funds, and you can make peer-to-peer transactions that don’t require the permission of other actors. When someone refers to DeFi, this usually also includes the platforms and services associated with decentralized tokens.
DeFi is still in an early stage of development. It may seem like so much has appeared on the crypto scene since Satoshi Nakamoto created Bitcoin, but in reality, DeFi is only at the beginning. The technology is being improved constantly, and new innovations are made all the time. We’ve really only begun to scratch the surface of what this ecosystem could evolve into in the future.
Of course, the downside of decentralization is that the field is largely unregulated. This makes DeFi a prime target for criminals to conduct scams. Since the fees on BNB Chain are low and the chain is relatively popular, there is an alarmingly high number of scam tokens on this chain. Given the lack of laws and law enforcement’s lack of expertise about crimes committed on the blockchain, we decided that it was time to build Bridges as an answer to the scams to protect those who want to participate in DeFi more safely.