DeFi vs Traditional Finance

To understand the full potential of DeFi is to understand the extent of problems which may be encountered in the traditional financial ecosystem:

Not all people have bank accounts or are granted access to financial services or products.
This could result in the rendering of such people unemployable.
Personal information is taken when securing financial services and this personal data is held by the financial institution. This personal information can be used for purposes other than what is meant to be used for.
Centralized institutions can manipulate or influence financial markets.
Traditional markets’ trading hours are usually restricted to specific business hours, according to city, state or country.
Completion of money transfers could take prolonged periods of time due to human and third-party processes.
Financial institutions more often than not charge a premium for financial services in order to pocket their cut.

Last updated 3 years ago

To understand the full potential of DeFi is to understand the extent of problems which may be encountered in the traditional financial ecosystem:

Not all people have bank accounts or are granted access to financial services or products.
This could result in the rendering of such people unemployable.
Personal information is taken when securing financial services and this personal data is held by the financial institution. This personal information can be used for purposes other than what is meant to be used for.
Centralized institutions can manipulate or influence financial markets.
Traditional markets’ trading hours are usually restricted to specific business hours, according to city, state or country.
Completion of money transfers could take prolonged periods of time due to human and third-party processes.
Financial institutions more often than not charge a premium for financial services in order to pocket their cut.

Last updated 3 years ago