Comprehending the four key components of DeFi is the most important step in understanding its features and advantages. Smart contracts provide the basis for developing DeFi applications, also known as dApps. A DeFi platform’s components are key elements of DeFi. Each component serves a unique purpose in developing the entire ecosystem. The four key layers […]
Learn Decentralized Finance (DeFi)
What are Decentralized Applications (dApps)?
Decentralized Applications aka dApps are interfaces that interact with the blockchain through the use of smart contracts. The main benefit of dApps is their censorship resistance and open-source ecosystem. On the surface, dApps look and behave like regular web and mobile applications… The key difference is that these applications are run on a peer-to-peer network […]
How to Limit Token Allowances on Metamask Wallet
Since smart contract hacks are incredibly common these days, it is important that you set up your own line of defense to minimize risk. The first thing you can do is limit smart contract approval. If you have participated in a DeFi protocol then you have already given smart contracts access to spend your wallet’s […]
What Are Flash Loan Attacks?
As of April 2021, the execution of flash loans requires programming skills that are not easily accessible by the average layman. Some truly smart programmers exploit vulnerable DeFi projects by launching a “flash loan attack” to manipulate the market in their favor. Like taking an ordinary flash loan, a flash loan attack happens almost instantaneously […]
What are Flash Loans in DeFi?
Flash loans are a type of unprotected or uncollateralized loans that are entirely different from how traditional financial institutions operate. With flash loans, you can bypass strict credit reviews and evaluations so you can quickly borrow cryptocurrencies without having to put up collateral. This is lending on steroids. Nevertheless, despite their innovation and increasing popularity, […]
What is a Smart Contract in Blockchain? (SIMPLIFIED)
A smart contract is a programmable contract that allows two counter-parties to set conditions of a transaction without the need for a central authority or an intermediary for the execution. The purpose is to simplify business and trade between both anonymous and identified parties without the need for a 3rd party. Smart contracts eliminate the […]
What is DeFi in Crpyto? (SIMPLIFIED)
DeFi is the acronym for Decentralized Finance and is currently the fastest-growing sector in the blockchain ecosystem followed by NFT (Non-fungible token). We have witnessed rapid growth in the DeFi space the past several years but still, not many people understand the importance of it and the associated risk that comes with all the juicy […]