See Crowdfunding Apps - Quadratic Funding

Quadratic funding makes sure that the projects that receive the most funding are those with the most unique demand. In other words, projects that stand to improve the lives of the most people. Here's how it works:

·         There is a matching pool of funds donated.

·         A round of public funding starts.

·         People can signal their demand for a project by donating some money.

Once the round is over, the matching pool is distributed to projects. Those with the most unique demand get the highest amount from the matching pool.

This means Project A with its 100 donations of 1 dollar could end up with more funding than Project B with a single donation of 10,000 dollars dependent on the size of the matching pool.

DeFi uses cryptocurrencies and smart contracts to provide services that don't need intermediaries. In today's financial world, financial institutions act as guarantors of transactions. This gives these institutions immense power because your money flows through them.

Plus billions of people around the world can't even access a bank account. In DeFi, a smart contract replaces the financial institution in the transaction. A smart contract is a type of Ethereum account that can hold funds and can send/refund them based on certain conditions.

No one can alter that smart contract when it's live it will always run as programmed. A contract that's designed to hand out an allowance or pocket money could be programmed to send money from Account A to Account B every Friday.

And it will only ever do that as long as Account A has the required funds. No one can change the contract and add Account C as a recipient to steal funds. Contracts are also public for anyone to inspect and audit. This means bad contracts will often come under community scrutiny pretty quickly.

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