Tag: Blockchain and Cryptocurrency Technologies

Definition Stablecoins are a type of cryptocurrency designed to minimize price volatility by being pegged to a stable asset, such as a fiat currency (e.g., USD) or a commodity (e.g., gold). Unlike traditional cryptocurrencies like Bitcoin or Ethereum, which can experience significant price swings, stablecoins aim to provide the benefits of digital assets—such as fast transactions and low fees—without the extreme fluctuations in value. Importance of Stablecoins Stablecoins play a crucial role in the cryptocurrency ecosystem by providing a reliable medium of exchange, store of value, and unit of account.

Definition Decentralized Finance (DeFi) is a rapidly growing sector within the financial industry that leverages blockchain technology to eliminate intermediaries such as banks and financial institutions. By using smart contracts on decentralized networks like Ethereum, DeFi enables peer-to-peer financial transactions, including lending, borrowing, trading and earning interest, all without traditional intermediaries. Importance of DeFi DeFi is transforming the traditional financial system by offering more inclusive, transparent and efficient financial services.