# Benefits

<figure><img src="/files/Wt1PTGZsvNS0KRUEv4uT" alt=""><figcaption></figcaption></figure>

The initial application of blockchains was the creation and movement of tokens, which represent a unit of value (e.g. BTC). However, it was the creation of DeFi ([decentralized finance](https://chain.link/education/defi)) that showcased the true potential of public blockchains. In particular, DeFi applications benefit from the following properties:

* **Atomic settlement:** The combination of [cryptography and decentralized consensus](https://blog.chain.link/what-is-cryptographic-truth/) leads to strong finality guarantees of economic transactions—mitigating double-spend attacks and fraud in a tamper-resistant manner, thereby increasing capital efficiency and reducing systemic risks.&#x20;
* **Transparency:** Public [block explorers](https://etherscan.io/) and [data dashboards](https://dune.com/browse/dashboards) provide granular and clear insight into the risk exposure and collateralization of DeFi as a whole. Furthermore, the source code of DeFi apps is open-source and can be reviewed by anyone. [View our blockchain transactions here.](/blockchain-addresses.md)
* **User control:** Non-custodial asset management is achieved through [private keys](https://www.gemini.com/cryptopedia/public-private-keys-cryptography), allowing DeFi apps to interface with assets in a trust-minimized manner. Decentralized autonomous organizations ([DAOs](https://blog.chain.link/daos/)) also allow for collective ownership of assets and applications.
* **Reduced costs:** DeFi apps operate more efficiently and autonomously since the need for [intermediaries](https://blog.chain.link/what-crypto-is-really-about/) is minimized. This facilitates low switching costs for moving capital across apps, creating an efficient market for app-level fees. Scaling technologies also make microtransactions feasible by reducing network-level fees.

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