Money is the currency of power in a world that values money, and power is centralized in those with control over money. They make the entire world dependent and watch their financial possibilities disappear. If individuals are to determine their own financial futures – and thus their lives – power must be decentralized and returned to them.
Traditional Finance and Fintech fail
World governments created tens to trillions of dollars as a way of bolstering their economies during the COVID-19 crisis. It also dilutioned the buying power for citizens around the world. Now, inflation is on the rise – 6.8% in the United States, 4.48% in India, and 3.8% in the UK. All world governments agree that they are free to print money at any cost. People are tired of their fates being dependent on the state’s policies – money printing, bank bailouts, trade wars, and business subsidies – policies that rob them of financial opportunities.
Fintech works to both reduce financial access and increase it. Inhumane automated systems determine insurance rates, big players on Wall Street manipulate the markets, financial institutions harvest people for their data, and governments take a piece of every dollar that citizens earn before they’re even paid.
But that’s only for those lucky enough to have access to financial services in the first place. Bank accounts and loans may be common in Western countries. However, not everyone has access to any financial services. Unbanked people may not have access to the following privileges: college loans, homeownership and insurance coverage. They also lack investing options, as well as stable salaries.
A New Financial System
Decentralized finance is a term that refers to a system where individuals can use crypto technology to offer financial services without the involvement of middlemen or authorities (i.e. banks and escrow service providers).
DeFi’s power comes from blockchains. They are decentralized records that track transactions and smart contracts. This software runs on decentralized computers, and can enforce cyberspace agreements. Blockchains and smart contracts allow for trustless financial cooperation. All financial agreements can be enforced automatically. It eliminated the need to have banks, credit agencies and loan officers as well as escrow accounts. Smart contracts and blockchain replace all of them, eliminating middlemen and making finance more efficient and lower barriers to entry.
DeFi’s decentralization means that no one can stop others joining. Everybody can access DeFi from any browser. Instantly, they have access to cryptocurrency trading and Peer-to–Peer loans. High-yield saving program also available. DeFi also offers additional benefits:
- DeFi can be used by the unbanked to open a bank account.
- DeFi allows people to generate passive income through the provision of services for others.
- Credit scores are not required, so everyone has equal access.
- DeFi ecosystems that are growing can act as significant investment opportunities.
So then, why hasn’t DeFi caught on? DeFi is still new and many of its kinks remain to be ironed out. Although DeFi platform engineering is secure and safe, many are still difficult to use. DeFiChain can assist with this problem, as it is a DeFi platform geared towards people.
DeFiChain is committed to empowering people and understanding their needs. DeFiChain is driven to develop fast, efficient and transparent decentralized financial solutions that can be used by everyone. Let’s look at a few things they’re working on that make DeFi easy:
- Secure platform built around Bitcoins principles
- An extensive learning platform that includes easy-to-understand DeFi Guides and instructional videos.
- An app on mobile which can be used for trading tokens and liquidity mining to get up to 20% APR reward.
- This platform allows users to create stock-based tokens and provides securities exposure.
DeFi’s Little Victories
While it hasn’t hit mass adoption quite yet, DeFi is making waves and generating buzz. DeFi NFT has attracted brands like Adidas and Coca-Cola. A few Bitcoin ETF launches have been successful around the globe. Blockchain is used for selling homes. Blockchain projects provide sponsorship opportunities for sports teams. And El Salvador adopted Blockchain as legal tender. DeFi wins are all over the place, making the world a more free and open.