Decentralized Financial Systems:
DeFi provides an alternative to traditional banking systems, with decentralized financial systems that operate on a peer-to-peer basis, potentially reducing the need for intermediaries.
Increased Accessibility:
DeFi provides greater accessibility to financial services, particularly for underserved populations who may not have access to traditional banking systems.
Lower Fees:
DeFi systems can potentially lower transaction fees associated with financial transactions, making it more affordable for individuals to access financial services.
Improved Efficiency:
DeFi systems can potentially streamline financial transactions and reduce the time it takes to complete them, improving efficiency and reducing costs. No need to wait days for the SWIFT codes to do the job.
Transparency:
DeFi systems operate on a transparent blockchain ledger, allowing for greater transparency in financial transactions.
Decentralized Identity Verification:
Web 3’s decentralized identity verification systems can provide an alternative to traditional identification methods, potentially reducing fraud and improving security.
Smart Contracts:
Web 3’s smart contract technology can be used to automate financial transactions, reducing the need for intermediaries and increasing efficiency.
Programmability:
DeFi systems are programmable, meaning that developers can build new financial applications and services on top of existing protocols.
Lower Minimum Investment Requirements:
DeFi systems allow for fractional investment, making it possible for individuals to invest in financial assets with smaller amounts of capital.
Increased Financial Freedom:
DeFi and Web 3 can potentially provide greater financial freedom to individuals by removing barriers to accessing financial services and empowering individuals to have greater control over their financial assets.