Blockchain technology is a distributed database ledger that is shared among the participants of the whole network. Like every database in the world, it stores information electronically.

The difference with the common databases is that blockchain works in a decentralized way, cannot be altered once secured by the network and is transparent to everyone.

There is no need for a central server to secure the network, the node participants are holding a copy of the ledger ensuring with this way that the network is secure, and no malicious actor can double spend a transaction.

Blockchain technology is a revolution for the internet fighting the old centralized systems and ways of doing things.

Technology itself provides the opportunity to create decentralized applications, decentralized systems. Every industry in the world will implement this technology soon. Why?

Because it’s not a common database.

It provides people innovations that were not available before, like sending money on weekends with minor fees or holding in a wallet multiple things digitally.

The most important thing about blockchain technology is that it allows people no longer to need anybody to have access to their data and funds.

Your keys, your crypto.

Your password, your data.

I imagine in a few years that companies will approach people to give them access and pay them for their data.

The next decade of blockchain is going to be great for blockchain technology for even more adoption. I am convinced that it can replace every centralized database in the world with success.

Centralized Finance (CeFi) is considered the money held by banks, money remittance services and merchants providing card merchandise services.

The problem with Centralized Finance is that there are high transaction fees and costs associated, there is a company running the system and whenever there is an issue with you or with your account they can freeze or remove you from their system without any notice, and lastly there are cases in our world where banks and governments just take your money away from you, again, without any notice (Greece and Cyprus).

All the above can be solved with Decentralized Finance.

In DeFi you do not need KYC to create any account, it’s decentralized, nobody controls the system so they can’t ban you from using it. You can send money to any account without questions or delays and lower transaction costs. You do not need to move from your chair and lose time as everything is online digitally on the internet, and lastly it works 24 hours per day, 7 days per week without any stop.

DeFi is not perfect, but it is a good (and better) way to move forward and transit from the old traditional systems to new ones.

In case you lose your private keys to your wallets, your funds are gone forever, there is no customer support to assist you. If you sent money by accident to another address, it is gone.

But that’s the reason is power, it’s decentralized, and you have complete control over your funds and your accounts.

My last thoughts of this article are about the ‘unbanked’. Unbanked people are among us that cannot participate in the current financial system (CeFi) because they do not have any bank account and cannot open one due to lack of appropriate id documents. These people are dependent on money remittance services to send or receive money.

Those people can now have access to the global financial system. These people can solve their problems with DeFi.

The major idea to leave here is that you can do everything that you do in centralized finance, banking, transactions, payments etc. by using decentralized finance.

Learn all about the different types of tokens with their features and examples:

1. Utility Tokens

Tokens that represent a value on the blockchain giving access to a specific product or service. Example is the BNB token, which is the native currency of Binance network.

2. Security Tokens

Securitized crypto that represents the value of an equity and can be traded under a financial regulation as security. Example is the Sia Funds (SF) which is the native currency of Sia Foundation.

3. Payment Tokens

Tokens that are used for buying and selling a goods and services. A great example is Bitcoin which is used easily via lightning network for payments.

4. Exchange Tokens

Tokens that are created by the crypto exchanges to be used across their platform. Binance is using BNB and BUSD or buying and selling and swapping tokens in their platform.

5. DeFi Tokens

Tokens that is used as a part of a Decentralized Finance (DeFi) ecosystem. An example is the native cryptocurrency of AAVE protocol (AAVE coin)

6. Non-fungible Tokens

Digital representation of anything that has value. This can be a ticket, title deed or digital art. Opensea.io is the platform that is leading the market

7. Asset backed Tokens

Tokens that their value is backed by real-world assets such as commodities or fiat currencies. An example is the PAX Gold (PAXG) which is backed by physical gold.

8. Algorithmic Tokens

Tokens that their value and supply is determined by an algorithm to be stable. This tokens are the most debatable due to terra ecosystem, the greatest failure. Ampleforth is a coin that the value is determined algorithmically.

9. Privacy Tokens

Tokens that are used to hide any information about the person that is using it. Monero is the coin that is leading the space.

10. Governance Tokens

Tokens that are used to offer people the ability to participate and vote on a specific project. MakerDAO native token MKR is used to govern the ecosystem

There are some more types of tokens but in my opinion this is the most important one’s. If I missed something important do not hesitate to comment!

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