It’s info time — DeFi vs traditional finance
One of the most effective ways to appreciate DeFi’s potential is to first grasp the issues that exist now.
1. Certain individuals are denied the ability to open a bank account or utilize financial services.
2. Limited access to financial services contributes to individuals unemployment.
3. Financial institutions can deny the access to your funds, block your payments or worse, it can decide to block you from getting paid.
4. A hidden fee associated with financial services is the processing of your personal data.
5. Governments and centralized entities have the ability to shut down markets at their discretion.
6. Trading hours are often restricted to the business hours of a certain time zone.
7. Due to human processing, money transfers can take days.
8. Financial services charge a premium because intermediate institutions need a share.
The solution Comparison of the DeFi system to the conventional system:
You keep your money. / Companies are the custodians of your funds.
You have complete control over where and how your money is spent./
You must trust businesses not to mismanage your money, such as lending to high-risk customers.
Fund transfers take place in a matter of minutes or even seconds. / Payments may take several days to complete due to manual procedures.
Transaction activity in a pseudonymous manner. / Your financial activity is tightly linked to your identity.
DeFi is available to everyone. / To utilize financial services, you must apply.
Markets are open 24 hours a day / Markets shut in order for employees to take breaks.
It is based on transparency — anybody can check a product’s data and examine how the system works. / Financial institutions have closed books: you cannot get a copy of their lending history or a list of the assets they handle.
Follow Sphynx Network:
Instagram: https://www.instagram.com/sphynx.network
Facebook: https://www.facebook.com/sphynxnetwork
Twitter: https://twitter.com/SphynxNetwork
Official Website: https://sphynx.network
