What is Decentralized Finance?
DeFi (Decentralized Finance) is an application using smart contracts, which runs (typically) the Ethereum blockchain, to obtain loans in the form of crypto assets and to use crypto assets. For example you can collateralize Ether (ETH) to get a loan in the form of DAI stable worth US dollars. Smart contract is the best feature on the Ethereum blockchain. Anyone can use it to make cool applications. The use of smart contracts in the DeFi sector has been increasing lately, which is reflected in the value of crypto assets stored in it. Smart contract itself is a special "programming language" on the blockchain. Programmers can use the code to create applications that run entirely on the blockchain (decentralized). The use of smart contracts guarantees at least human intervention in the process. The user is quite sure that the program code runs properly automatically. All DeFi can be used by anyone, as long as they use the highly recommended MetaMask crypto asset wallet. In DeFi Maker, for example users pledge their Ether crypto assets and get DAI as loans. DAI is a stable dollar value in US dollars, where the value of 1 DAI is equivalent to US $ 1. DeFi also promises transparency values, where the program code used is open and can be seen by the public. However, the mistake of combining different codes can lead to disaster, as happened to Lendf.me some time ago: user funds were missing hundreds of billions of rupiah. What is clear is that DeFi is a real proof of blockchain technology and other techniques that accompany it, namely the smart contract. It's just that, because this is still in its very initial form, it is also possible that a mistake in implementing the program code can lead to fatal and ignite public distrust. This also can trigger delays in adoption by large institutions. In that case, what needs to be boosted is the standardization of special DeFi and dApp program codes by the International Organization for Standardization (ISO). Without ISO, there is no guarantee, especially for large-scale businesses. That is, there are still many big challenges facing DeFi. And at the same time, blockchain defenders must work harder to maintain that trust