Is DeFi going to Revolutionise the global financial system?
DeFi is a decentralised financial platform that enables digital asset issuance, tracking, and trading. DeFi platforms allow for the creation of custom tokens, which can represent any asset or utility. These tokens can then be used to describe shares in a company or can be used to pay for goods and services. DeFi platforms also enable the creation of decentralized exchanges, which allow for the trading of digital assets without the need for a third party. This allows for faster, more secure, and more efficient trading of digital assets.
One of the most important aspects of DeFi is that it will open up banking and investing opportunities to everyone, regardless of their citizenship or financial status. This will allow more people to participate in the global economy and have access to the same opportunities as those who are already well-off.
There is no doubt that DeFi has the potential to democratise finance by making it more accessible to everyone. However, there are still some unanswered questions about how this will be achieved and whether it will be truly efficient and convenient for everyone. There is also the risk that DeFi could be abused by scammers and criminals, which could have a negative impact on those who are less experienced with finance.
As DeFi seems to offer everything that traditional finance does and even more, is it going to be the end of the financial system as we know it? The short answer is no, there is no evidence to suggest that DeFi will spell the end of traditional finance. In fact, it is likely that the two will continue to exist side-by-side. That said, there is the potential for DeFi to be abused by scammers and criminals. For example, a criminal could use DeFi to launch a phishing attack, in which they steal people’s login credentials. Alternatively, a scammer could use DeFi to defraud people of their money. So, while DeFi does offer a number of advantages over traditional finance, it is important to be aware of the risks associated with it and to take steps to protect yourself from scams and fraud.
Experts say that the intermediaries won’t automatically disappear but their role will have to evolve. They’ll find themselves in need to prove their added value to the public as they won’t be in a monopoly situation anymore.
That being said the starting point for someone who is willing to try DeFi should be our Very Simple-Sophisticated DeFi Wallet Called Plena Finance. Plena is a next-generation, powerful and user-friendly DeFi wallet that lets you store, send and receive tokens easily. Our wallet has been designed with the everyday user in mind and makes participating in the DeFi space simple and straightforward. We’ve created Plena to make it easy for everyone to get involved in the DeFi space and take advantage of the many benefits that it offers.
