Dan Schatt and Domenic Carosa of Earnity and the Basics of DeFi
DeFi, or decentralized finance, is a term used to describe financial applications built on blockchain technology. These applications allow users to interact with each other without the need for a third party. Dan Schatt and Domenic Carosa, fintech veterans and executives of DeFi startup Earnity, want a social platform where veterans and newcomers to crypto can converse.
DeFi apps can be divided into two categories: those that allow users to store and trade cryptocurrencies and enable users to borrow and lend money. Apart from being independent and decentralized, DeFi apps can be used for different operations. Such functions include tokens, stablecoins, wallets, staking, exchange, yield farming or liquidity mining, lending and borrowing, and insurance. Users can generate cryptocurrencies, smart contracts, and trustless protocols through blockchain technology, allowing users and developers to link up without third parties.
DeFi app development can be a complex process. Still, it can be an exciting and rewarding experience with the right tools and knowledge. This is why Earnity executives Dan Schatt and Domenic Carosa set out to create a clutter-free social-first platform.
The first step in developing a DeFi app is for developers to create their crypto tokens or combine them with existing tokens or coins to enable exchange, purchase, and other functions. Second wallet integration. A wallet ensures users have a depository to keep currency and help perform operations on the DeFi platform. Third, develop the front end. Having an interface allows for communication from the frontend to the backend APIs. The interface provides access to the different functions within the DeFi app via smart contracts. For the fourth step, set up smart contracts, a set of codes operating the execution of conditions to be followed for every transaction. Soon as smart contracts are completed, the final step is backend integration. Smart contracts can be integrated directly with a frontend or a backend API. This process sees both frontend and backend of the DeFi app get integrated into the blockchain.