What fintech can’t solve in traditional finance

In a world where money is power, power is centralized in the hands of those who control money. Depending on them, the people of the world suffer as they slowly see their financial opportunities disappear. If individuals are to determine their own financial future – and thus their lives – power must be decentralized and returned to them.

Failures of fintech and traditional finance

Panicing to sustain their economies, world governments pressed tens of trillions of dollars during the COVID-19 pandemic, decreasing the purchasing power of citizens worldwide. Now inflation is rising – 6.8% in the United States, 4.48% in India, and 3.8% in the United Kingdom. World governments have made it very clear that they can print as much money as they want, regardless of the cost. People are tired of their fate depending on state policies – printing money, bank bailouts, trade wars and corporate subsidies – policies that rob them of financial opportunities.

Fintech is doing both to reduce and increase access to financial services. Inhumane automated systems set insurance rates, major Wall Street players manipulate the markets, financial institutions harvest people for their data, and governments take a slice of every dollar citizens earn before they are even paid.

But that’s only for those lucky enough to have access to financial services in the first place. Although bank accounts and loans are common in western countries, many people have no financial access at all. For those without a bank account, college loans, home ownership, insurance coverage, investment opportunities, and stable wages are all unfamiliar privileges.

A new financial system

DeFi stands for Decentralized Finance, a new type of financial system in which individuals use cryptocurrency technologies to provide financial services to each other, without the need for centralized authorities or intermediaries (such as banks and escrow services).

DeFi is powered by blockchains, decentralized records of transactions; smart contracts, bits of software that run on decentralized computers and enforce agreements in cyberspace. Together, blockchains and smart contracts enable reliable financial collaboration, with all financial agreements automatically enforced. This eliminated the need for banks, credit bureaus, loan officers and escrow accounts. Blockchain and smart contracts are replacing them all, removing middlemen, making finance more efficient and lowering barriers to entry.

Since DeFi is decentralized, no one can stop others from joining. Anyone can visit a DeFi platform in their browser and get instant access to cryptocurrency trading, peer-to-peer lending, and high-yield savings programs. Here are some additional benefits of DeFi:

People without a bank account can use DeFi to bank themselves. DeFi allows individuals to earn passive income by providing services to others. There are no credit scores, meaning all people have equal access. Growing DeFi ecosystems themselves act as important investment opportunities.

So why hasn’t DeFi caught on? The truth is that DeFi is new and some issues have yet to be solved. While the technology behind DeFi platforms is safe, most are difficult to understand and use. This is true DeFiChain, a people-centric DeFi platform, can help.

DeFiChain believes in empowering individuals and understands the needs of users. This forces them to create fast, intelligent and transparent decentralized financial services that are accessible to everyone. Let’s take a look at a few things they’re working on that make DeFi easy:

A secure platform built on Bitcoins principles A thorough learning platform with easy-to-understand DeFi guides and educational videos. A full-fledged mobile app which can be used to redeem tokens and liquidity mines for up to 200%+ APR rewards. an innovative platform for users to store share-based tokens, giving users exposure to securities.

Small wins of DeFi

While it hasn’t achieved mass adoption yet, DeFi is making waves and generating buzz. Brands like Adidas, Coca Cola, and several others entered the DeFi NFT space. Bitcoin ETFs have seen a few successful launches around the world. Houses to sell through the blockchain. Sports teams score sponsorship of cryptocurrency projects. And El Salvador adopted Blockchain as legal tender. DeFi wins are popping up everywhere and the world is slowly becoming a freer place.

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