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    Intro

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    Good morning and Happy Thursday! 🥳🥳🥳🥳

    Part 4: This is the final part of our mini-series on the crypto space. Startups will return tomorrow!

    Tech Snippets

    👀 Another large data dump: Still recovering from last month’s Facebook data leak, the social media giant is already up against another crisis: a search tool that reveals the email address of a Facebook account even if it’s not publicly advertised — with a daily processing capacity of 5 million email addresses. Deep Dive here →

    💇 Prime Hair: In a surprise move, Amazon is branching out into hairdressing with the launch of its first ever salon in London. The goal is to put the latest technologies, such as augmented reality, to the test. Customers can, for example, see how they would look with a different hair color in this high-tech hair salon before committing themselves. Deep Dive here →

    🎶 Does this music exist? In the future, many content areas will be generated by AI. We’ve already seen fake human faces, videos, and voices. Next up: Creative content like music will, in the near future, most likely be generated by AI. Here’s a look at how things are progressing. Endless acid house generated by your computer: Deep Dive Here →

    Micro Knowledge

    What is DeFi?

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    Source: ethereum.org

    DeFi, also known as decentralized finance, is an umbrella term for a variety of financial applications in cryptocurrency or blockchain that aim to eliminate financial intermediaries.

    Purpose: DeFi provides financial services similar to those found in a traditional setting. Furthermore, it allows for the creation, tokenization, and management of digital assets on blockchains.

    Users interact with DeFi through software known as dApps. DEXs, such as AirSwap, Oasis, and Uniswap, are for one-to-one transactions of cryptocurrencies and tokens and provide full financial control over funds. DAI and USDT are stable coins that are primarily used for lending and remittance payments.

    Pros:

    • Easy and immediate access: There is no need to apply for or create an account. Users can only gain access by creating a cryptocurrency wallet with one of the leading providers, such as Metamask.

    • Pseudonymous: No basic or personal information is required.

    • Flexible: Users can move their assets anywhere, at any time, without difficulty.

    • Fast: Interest rates and rewards are updated in real time and are typically higher than on traditional Wall Street.

    • Transparency: Everyone involved can see the transactions.

    Cons:

    • Expensive: Due to fluctuations in transaction rates on the blockchain, active trading can become costly.

    • Volatility: Depending on the dApp you use, the investment may experience volatility — after all, this is new technology.

    • Code Bugs: Smart contracts are the foundation of DeFi Projects. Even if the smart contract has a minor flaw, it can result in a loss of funds.

    • Taxation: It is now obvious that users must keep records for tax purposes.

    Bottom Line: DeFi is still in its early stages and has a long road ahead of it, with a total value estimated to be around $40 billion in April 2021. To put this figure into context: In 2020, the total assets of financial institutions worldwide were valued at $155 trillion.

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