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DeFi ‘more than a technical gimmick’ — it’s the future for big business

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Maximilian Schmidt said that DeFi is more than just a technical gimmick. He believes that the future of big business is behind DeFi, as the sector has many advantages. He also highlighted such completely decentralized types of business as banking, insurance, loans, hedge funds, stock exchanges. And he noted that soon the decentralization of business cases will become a global standard.

According to experts, the decentralized finance market has huge potential. The role of the DeFi ecosystem will continue to grow if developers can scale it up.

Note that as the DeFi sector grows, more and more experts believe that “decentralized finance is the future, the near future”.

Huge opportunities

Behind all the hype around decentralized finance lies a significant advance in technology.

In just a few years, the entire DeFi ecosystem has done what traditional systems have taken hundreds of years. decentralized finance empowers the financial arena with tremendous opportunities, including the creation of a new type of asset that allows virtually all users to access funds at any time.

Decentralized finance will have a significant impact on the future economic situation. Also, experts note that “in the near future, people will no longer need banks, since they will completely switch to using the services of a modern financial system, and this scenario is already happening”.

For example, in China, services such as Alipay or WeChat have already been implemented, which successfully allow people to do without banks.

The lack of oversight from central banks and governments is the strongest point of the decentralized finance market and makes it truly global. The main challenge is scaling this ecosystem, that is, improving its bandwidth.

Experts are confident that increasing the productivity of the DeFi market facilitates the adoption of new decentralized finance protocols.

Security

Another big benefit of implementing DeFi at the institutional level relates to the inherent security benefits of blockchain systems and recent improvements in transaction privacy that enable institutions to create ecosystems that are safe and attractive to customers.

Binance supports DeFi

The largest cryptocurrency exchange Binance also heavily supports decentralized finance and is developing many projects around this area.

Binance is investing decent amounts in decentralized finance and adding various DeFi tokens to the exchange. But while the exchange believes in decentralized finance, Zhao noted that at the moment, most users still prefer to work on centralized platforms, so Binance will continue to provide products that users demand.

DeFi is the future of finance

DeFi is the future of finance because decentralized finance can solve problems that traditional finance cannot. There are 5 features that make DeFi the future of finance.

1. DeFi is a service for everyone. To use decentralized finance, all people need are smartphones and the Internet.

2. DeFi is a service without borders. This means anyone can use decentralized finance anywhere in the world.

3. DeFi is a service that has increased security because it is based on blockchain technology in which anyone can verify transactions at any time.

4. DeFi is a service without government. Interest rates are determined by supply and demand in the market.

5. DeFi is a plug & play service. To use decentralized finance, people don’t have to go through a huge amount of documents, but instead follow simple and easy steps. Decentralized finance has these characteristics because it is built on blockchain technology.

According to experts, DeFi is the latest stage in the financial revolution. While decentralized finance will not replace all traditional finance, services that require security and lower transaction fees will be enhanced by DeFi.

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