What are the advantages of DeFi?

The traditional financial system hinges on financial institutions such as banks. They act as Intermediaries, and the court provides the resolution for controversial issues.

DeFi apps don’t require any intermediaries, and therefore don’t need arbitration from any third parties. While smart contracts resolve all possible disputes, the users control their funds. This reduces the cost of services and provides for a more transparent financial system.

DeFi software initialization is carried out over blockchain networks so that the influence of unauthorized persons on the system is excluded. This data is recorded on the blockchain and is distributed among thousands of users, which eliminates censorship or forced shutdown of the system.

There’s one more advantage to such open ecosystems. It lies in the simple access to financial services for people who, for some reason, don’t have such an opportunity. The traditional financial system is based on being an intermediary for the profit, therefore, residents of low-income regions have limited access to financial services. DeFi gives people an opportunity to use the necessary financial services regardless of their location.