18/05/22

Decentralised Finance – DeFi!

Decentralised Finance (DeFi) only can be made possible because finance was centralised. It was not always this way. Long before banks and central banks, there were local credit markets. In the 17th and 18th centuries, these markets comprised local businessmen and merchants in groups such as societies but in more or less hermetic circles. Why a hermetic circle? How else would you know who to trust unless you operated in a closed environment? Lending and credit were person to person based upon the references of other people. The credit reporting agency was the sum total of all participants and local references.

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