DO YOU SEE DEFI REPLACING TRADITIONAL FINANCIAL SYSTEM IN THE NEXT FIVE YEARS?
Well all thank for the Blockchain technology that is changing so many aspect of life,one of the ways Blockchain has been effective is in financial aspect of life.the traditional banking system has been in existence for a long time and this has also been very vital to everyone around the world,but as we all know nothing is meant to be forever and now here we are with the Blockchain technology revolutionalizing the financial system through DEFI.
By definition,Defi refers to a financial system or application built on Blockchain technology which helps in carrying transactions between two or more parties.defi involves carrying out transactions such as cryptos lending,buying and selling of cryptos as well as investing in cryptos.
One fascinating thing about defi is that it does not involve a central authority,that is no single entity as control over it,not even the government of a country can have absolutely control over defi.as we continue to move into the future,the financial system are gradually becoming more of defi,although not everyone is quite aware of it.why defi will be a force to reckon with in the financial system is that it encourages transparency,which doesn't need third parties in carrying out it's activities.
Obviously there are some feature that differentiate defi's from the traditional system.the anonymous nature of defi has proven some advantage over the traditional banking system.unlike the traditional that need you to get verified before you can do business with theirs platforms defi doesn't require that,so by removing middle man,defi promote access to creat fluid which is open to everyone globally.
Defi is very easy to operate,generally a you need is an internet system and a crypto wallet where you can actually save your cryptos since it going to be more of cryptos than the traditional currencies,so in this case no minimum finds is needed,but on like the traditional banking system,if you want to have an account with them some funds will be need this is way the traditional banking system keep it tie there customer's from being able to close the account when needed but in defi all of this is not needed.
HOW POPULAR AND ACCEPTABLE WILL DEFI BE IN THE NEXT FIVE YEARS
There is a gradual.shift from the traditional banking system into a digital system like defi,right now defi is free for anyone to use and it will continue to be free because of its decentralized nature.we might say that five years is still far from now but the truth is that we are moving at a very fast pace when it comes to adoption,to me people are becoming more aware if the advantages that are attached to defi and how simple and less stressful it is to use.so in the next five years I am very sure there would very rapid adoption of defi in the financial system.although at that period it might not totally replace the traditional financial system but there will definitely going to be massive adoption of it.
So fellow hivers do you see defi replacing the traditional financial system in the next five?