Since the 2008 recession, trust in traditional banking has significantly decreased. In a report by Edelman Research, 73% stated that consumers believed that central banks need to continue to lead on creating and utilizing technologies in order to progress. Centralized banking is very inflexible and prone to human error. Moreover, global accessibility is a huge problem. The World Bank reports that globally, nearly 1.7 billion people in the world still don’t have bank accounts.
Decentralized banking on the blockchain provides more accessibility and solves the issue of global financial accessibility. With the rise of the Internet and mobile devices, decentralized banking eliminates the need for traditional banking infrastructure. PROXI aims to improve global accessibility and gain consumer trust through innovating DeFi with cross-chain derivative issuance and credit lending. PROXI is built on the COSMOS blockchain network, which ensures security and reliability while providing unlimited scalability.
Centralized banking can also be inaccessible due to credit checks and third-party interference. With PROXI and DeFi, investing and managing finances is streamlined and more private without the involvement of third parties. There is no one financial body overseeing an individual’s finances and payouts, rather, smart contracts are put into place. Smart Contracts are contracts which are encrypted into the blockchain, and assets are issued to the receiving party in real-time. Moreover, investments made on the PROXI platform can be managed using a simple, user-friendly Portfolio Dashboard in real-time. Lenders and borrowers can be connected anytime. PROXI also allows access to geo-blocked markets, further enhancing accessibility.
PROXI, utilizing the power of DeFi, allows for trust to be gained back into the financial industry. The removal of third parties, while creating an asset-backed synthetic issuance protocol, P2P lending & margin pool, as well as the management of one’s own portfolio dashboard allows for one to have more control over finances. It also aims to improve financial accessibility through the allowance of access to geo-blocked markets.
Sources:
https://www.edelman.com/research/trust-in-financial-services-2019
