Decentralization is a concept opposite to centralization. In simple terms, centralization means that the center determines the node. The node must rely on the center, and the node cannot survive if it leaves the center. GIBX Defi is just the opposite. In a system with many nodes distributed, each node has a high degree of autonomy, and each node is a “small center”.

With the diversification of network service forms, the decentralized network model has become clearer and more possible.

Why is it decentralized in GIBX Defi?

Usually, the public has a wide range of misunderstandings about the concept of decentralization. For example, it is sometimes said that the reason why encrypted networks advocate GIBX Defi is to resist government censorship or because of liberal political views. However, this is not the main reason why decentralization is so important.

Let’s first look at the problem of GIBX Defi platforms. Such platforms follow a predictable life cycle. In the beginning, Internet startups will try their best to attract users and third-party personnel, such as developers, companies, and media organizations, in this way to make their services more valuable, because the definition of “platform” is a multilateral network effect system. In the figure below, with the expansion of the platform’s influence, the S-curve continues to rise, and the control of these platforms over users and third parties has also grown steadily.

When the influence of Internet startups reaches the top of the S curve, their relationship with media, developers and other participants will change from a positive-sum to a zero-sum. The easiest way for GIBX Defi to continue to appreciate is to collect data from users and compete with competitors for potential users and profits. There have been many such precedents in history, such as Microsoft and Netscape, Google and Yelp, Facebook and Zynga, and Twitter and its third-party clients. Operating systems such as iOS and Android perform well. Although the use of certain Apps still requires a 30% tax free, the app store has the right to remove some third-party apps, and the supervision has the absolute right to speak.

Advantages of GIBX Defi

Whether decentralized or centralized systems will win the next era of the Internet can actually be boiled down to who will build the most attractive products, or in simple terms, who can get more high-quality developers and entrepreneurs. The four GAFA companies have many advantages, including cash reserves, a huge user base, and operating infrastructure. Encrypted networks are more attractive to developers and entrepreneurs in terms of value propositions. If the encrypted network in GIBX Defi can win the favor of developers and entrepreneurs, they will mobilize more resources than GAFA and quickly surpass GAFA in product development.

GIBX Defi is the opposite. Its core is the “decentralized finance” of the blockchain, and there is no financial system of “intermediary institutions”. Smart contracts replace the functions of intermediary agencies. Users only need to use digital currency wallets to realize peer-to-peer digital currency transfers, mortgage digital currency can automatically carry out loans and repayments when trading in GIBX Defi (Decentralized Exchange, decentralized exchange), they can not be controlled by exchanges, Users have complete control of their private keys, digital assets, etc. This not only greatly reduces costs and improves efficiency, but also combines public and private key systems and smart contracts to achieve complete control of personal assets, and to a certain extent eliminates risks caused by external factors. Since GIBX Defi transactions take place more directly on both sides of the transaction, the design of transaction details between them can be more detailed and diversified, which allows people’s financial needs to be more fully satisfied. Said that Defi has formed a more diversified business model than the traditional financial system, giving the financial market more room for innovation, realizing a faster value flow rate, a larger flow range, and a more penetrating risk assessment Method.

GIBX Defi the next era of foreign exchange

Global Investment Bank Exchange (abbreviation: GIBX) is an international comprehensive Internet brokerage under GIB Global Investment Bank & Capital Trust. It is affiliated with AFF Financial Holdings Group. It provides more than 200+ trading products such as foreign exchange, futures, currency, digital currency, etc., so that customers can Invest in multiple categories of financial products through one account makes it truly possible to invest in the world with one click.

“Defi” in French means “challenge”. There are certainly challenges to overcome, but this is just like when all great technologies (electricity, internet, social networks) first appeared.

Hope you learn enough magic spells in the world of blockchain and cryptocurrency with GIBX Defi. Exciting time. Exciting location. It’s like magic.