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Programming 03 Mar 2022

What are decentralized finances, or DeFi?

Carlos Torres Vila, BBVA Chair and the ambassador of the Code.org initiative in Spain, explained the way decentralized finances works - an emerging concept based on blockchain technology that is destined to change the financial system. BBVA’s Chair participated in an instructional video for students and professors of this educational project, which promotes programming education for youth.

BBVA is collaborating with Code.org to promote programming among Spanish students and  advocate for the inclusion of these studies as a mandatory subject in school systems. One of the first activities resulting from this collaboration was Carlos Torres Vila participating in the educational platform’s training videos. The BBVA Chair explained what decentralized finances (or DeFi) are, as well as the technological concepts used in this system, such as blockchain, smart contract and Web3.

Decentralized finances are in the beginning stages, but are really growing, and can alter the way the financial sector works,” Torres Vila said. For BBVA’s Chair, this system “is making it possible for any person to participate on any scale to both use and offer financial services, without any intermediaries other than a computer program.” .

The financial sector is the first to apply this type of technology, “but decentralization through smart contracts stored in blockchain will extend to practically any sector of activity,” he explained. Something known as Web3, the new version of Internet in which services will be more decentralized, is currently positioned as one of the most powerful disruptions, as it opens up a world of new opportunities.