JENCO TECH YOUR ROAD TO DEFI
Our core value is to connect traditional finance and crypto markets through smart contracts and token economy solutions. Jenco Defi platform aims to introduce consumers to simplified, versatile, and innovative financial products (derivative trading, lending bots, DeFi hybrid products, token funds).
Traditional vs. Decentralized Finance: a Jenco Analysis Report Money is a basic necessity for trade. People get to make purchases because they have the financial means to do so. Traditional finance utilizes monetary modes of exchanges through banks and other financial institutions, following distinct currency values that are different across countries. Decentralized finance, however, enables digital transactions that do not follow centralized channels and distinct currency values.
What is Traditional Finance? Traditional finance uses a centralized authority that maintains distinct currency values across nations. Banks and other financial institutions enable monetary transactions using uniform values that may change, depending on the present GDP (Gross Domestic Product) of the different nations whose currencies are used in particular exchanges.
What is Decentralized Finance?
In contrast, decentralized finance (DeFi) does not use a centralized authority to maintain currency values across nations. Due to the inequalities observed across the different financial systems worldwide, the necessity of enabling convenient cross-country or crosscurrency exchanges was developed. The utilization of DeFi’s blockchain technology allows global accessibility of various financial services, low transaction prices, and secure exchanges.
Why is DeFi More Beneficial? DeFi uses electronic devices to interact and display bidding or asking prices in real-time. Hence, traders do not necessitate being in the same location to initiate transactions. Everything is done virtually, and digital markets are made secure by blockchain technology .Utilizing DeFi is more beneficial since users do not have to follow centralized rules. Direct, peer-to-peer exchanges can occur, given that various values are agreed upon irrespective of the current offline values. Dealers or thirdparty mediators can also be utilized.