How do DeFi payments work?

One of the leading platforms in the DeFi space is BTCC, a top cryptocurrency exchange that offers a comprehensive suite of services. BTCC's offerings include spot trading, where users can buy and sell digital assets at current market prices.

DeFi, or Decentralized Finance, operates on a fundamentally different principle than traditional financial systems. At its core, DeFi leverages smart contracts, autonomous pieces of code that execute transactions based on predetermined conditions.

Additionally, BTCC provides access to futures trading, allowing users to speculate on the future price movements of cryptocurrencies. This feature adds a layer of complexity and potential profit opportunities for experienced traders.

These smart contracts eliminate the need for intermediaries such as banks or other financial institutions to act as guarantors for transactions. Instead, participants in the DeFi ecosystem interact directly with each other, fostering a more peer-to-peer approach to finance.

The direct interaction between participants is facilitated by blockchain technology, which serves as the backbone of DeFi. Blockchain ensures the security, transparency, and immutability of transactions, creating a trustless environment where participants can confidently engage in financial activities without relying on third-party intermediaries.