DeFi incentivises people to learn about money, wallets, blockchains, and the different financial products available to them. This boosts financial literacy and social mobility.
After Satoshi Nakomoto helped introduce Bitcoin to the world as a way to put self-sovereign money into the hands of individuals, the pioneering builders of DeFi protocols – MakerDAO, Aave, Compound and Curve to name but a few – have taken the vision a step further by allowing people to borrow, lend, create insurance and earn with crypto assets – when they want, where they want.
This new digital trust model built on a new tech stack working across the internet is a global, instant, safer, 24/7 alternative to classic payments, at a fraction of the cost.
DeFi will never be trusted and embraced as a viable financial resource unless it embraces the checks that will ensure legitimacy.
Decentralised finance (DeFi) applications have become increasingly popular since 2017 and are considered by many as the next evolutionary step that will completely replace traditional centralised finances (CeFi).
Blockchain effectively provides the missing link to finally having an internet of money, an internet of decentralised solutions and the ability to create trust through code.
The potential of DeFi products and solutions is unparalleled. The massive influx of users and capital into the DeFi space is a testament to its potential. Keeping in mind the brief past, it is a no-brainer to envision DeFi going to the moon.
In countries with a broken or nonexistent financial infrastructure, blockchain’s open source nature and scalability are more easily adopted and thus quickly more impactful.
Those entities that put in the substantial money, time and effort that is required to implement and maintain blockchain systems will in the long run be clear winners and take up significant market share.
Blockchain as one of the central exponential technologies and indeed as a future background technology very much like electricity or the internet is clearly driving change at a new speed.
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