The global financial system that we know has created massive wealth opportunities, but only to those who have strong connections with the financial centers of the world, meaning those who are already wealthy. For the rest of the world, this means inequality, and it continues to rise. In a nutshell, those who are rich become richer and the poor, poorer. So, one can’t help but ask, is there a financial system that’s more accessible for everyone else other than the wealthy? Thankfully, the massive developments and rapid adoption of technologies such as blockchain, made it possible for a decentralized financial system to emerge. Here’s what you need to know about decentralized finance.
What is Decentralized Finance (DeFi)?
DeFi is an emerging financial system of applications built around public blockchain and open-source protocols. It’s a bold and daring attempt to decentralize traditional financial use cases, such as trading, investments, payments, insurance, wealth management, etc., through the use of blockchain technology. The main idea is to create a financial system based on a transparent and trustless framework, such as peer-to-peer (P2P) protocols. Decentralization is not a new idea, but applications that offer financial services that are not controlled by a central authority such as the Virie Market makes us one step closer to global financial equality.
What are the main benefits of DeFi?
Truly decentralized platforms or applications such as Virie Market are free of any censorship. This means that anyone from any location in the world can freely use it regardless of race, status, or wealth. No central party can censor or invalidate a user’s transaction or reverse them, nor can they shut down the network.
Ø Wider global access to financial services
With the current system, there are many barriers in accessing financial services, but with DeFi, everyone with an internet connection and a smartphone can have access to all financial services. For example, an ordinary employee from the Philippines can have the same access as that of a large firm in the US.
Ø Low-cost and speedy transactions
The existing centralized payment systems such as PayPal and wire transfers are either too slow in processing payment transactions or charge high-cost fees. With DeFi payment systems, sending money across the globe is relatively low-cost and super-fast. In fact, Virie Market has the lowest transaction fee in the market today.
Ø Improved privacy and security
In decentralized finance, users have full control of their money and can freely transact whatever which way they want without any validation or control from any third party. This eliminates the threat of any malicious attempt brought about by stolen data and information that is a common eventuality with the current system. Virie Market, for example, doesn’t require any information to use it. All you have to do is download the application, and that’s it. It also provides a User Guide to help you have a quick jumpstart. Its Whitepaper contains everything you need to know about it. Go ahead and take a look at it.
While DeFi is still in its infancy, there’s no doubt that it has potentials that can change the global financial system very soon, especially that there’s already a fully-functional application, which is the Virie Market. Once it launches its ICO, it could bring forth the beginning of a new age of financial freedom we never thought possible.