Despite the overall decline of crypto values in recent years, blockchain technology continues to make ground-breaking changes across borders and industries. Of the various blockchain-based programs available today, one of the most progressive is Ethereum-based Decentralised Finance (DeFi). Discover why this unique ledger-based technology is leading the revolution with a brand ambassador for blockchain companies.
The Problem with Traditional Trade
To grasp the full scale of DeFi’s radical potential, a brand ambassador for blockchain companies recommends understanding the alarming issues that have long plagued the finance sector:
- Traditional trade is regulated by a central authority, such as a bank or government body. Since asset and currency management all fall under the control of a single entity, all it takes is a single breach to compromise the system.
- Central authorities are composed of people and are thus susceptible to human error. For instance, consider the poor monetary policies that led to hyperinflation in Venezuela.
- Financial advisors help companies and individuals succeed in their commercial ventures in exchange for a part in their income. However, they are also vulnerable to human error, such as prioritising their profits.
- Banks and other financial organisations offer fixed and recurring deposit policies to their clients. They maximise the money’s potential by providing loans at high-interest rates and investing it in share markets. Depositors only benefit from a fraction of what these institutions earn.
The centralisation of the economy worldwide is the root of all these issues. Hence, the best way to solve them is to decentralise with blockchain technology.
How DeFi Can Alter the Financial Landscape Worldwide
Decentralised finance covers any financial application or software based on blockchain technology. It can be used for banking, decentralised trade, peer-to-peer lending, and other types of transactions. It can revolutionise finance in several ways:
- DeFi gives companies and individuals full control over their assets through a decentralised system.
- All forms of DeFi includes the use of smart contracts, which directly manage the transfer of digital currencies and assets between parties once certain conditions are met. Hence, all transactions made with a DeFi application are completely trust-less and independent of intermediaries.
- Anyone can take advantage of DeFi, regardless of their location and financial status. All blockchain protocols are open to the public, which means everyone is free to create financial applications and product based on them.
- Unlike with payment processing agencies, blockchain-based financial programs do not allow the unexpected closure of accounts due to various reasons. Censorship is also not an issue since everything is transparent to all involved.
DeFi has the potential to disrupt the traditional finance market completely. It eliminates all points of failure using identical records across thousands of computers through a peer-to-peer network. It is no wonder many of the world’s largest businesses have stopped asking what is blockchain and are taking steps to implement it into their operations.
Explore DeFi’s Business Potential with Key Coin Assets
With DeFi’s continuous development and widespread adoption, it is only a matter of time before it becomes a mainstream option. Invest in DeFi today with Key Coin Assets. Let our trusted brand ambassador for blockchain companies help you maximise the technology’s revolutionary potential. Contact us NOW at 843-886-9547 and start to invest in yourself!