Advantages of Decentralized Finance

 A new decentralized financial system that is being introduced to impede the issues in the current traditional system. This Decentralized Finance DeFi leveraging the distributed ledger technology, blockchain can make a better environment for financial services of all Fintech industries.

This DeFi, growing trend in the Financial Industry will have game-changing impacts on global Finance in near future, that could help the fintech industry to find out the answer for How DeFi is eating traditional finance?

DeFi - Eliminating the issues in the Financial System

The Traditional Financial System uses intermediates to complete every single transaction between any two parties. As we all know that DeFI is decentralized and does not involve any middle man to process any transactions.

The current financial transactions can take up several times and may consume a high cost of money. But DeFi can make the process easier and reduce the time and cost involved.

This Decentralized Finance is one in which all the financial transactions are handled by blockchain smart contracts, which executes the process instantly and automatically.

Thus, DeFi can eradicate problems like lack of trust, time consumption, increased cost, and a lot more that are existing in the real-time traditional financial system.

Benefits of Decentralized Finance Ecosystem

Listed here are the advantages or Benefits of DeFi over the traditional financial system

Permissionless

Open-source

Decentralized

No involvement of Central Entity

High Liquidity

Borderless

Provides full control over funds

Time-Saving

Cost-Effective

Restrict the fraudulent activities

These are the advantages of DeFi- The New Decentralized Financial System over the current traditional financial system.

The Potential of DeFi is found and understood by many Fintech industry experts and they have started utilizing DeFi to tackle the inefficiencies in their current system and services. 

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