Decentralized finance which is known as Defi for short is the implementation of blockchain technology in creating financial transactions, products and services. Defi is completely decentralized as the name implies and does better than traditional banking. Although ancient, well known and used by many, traditional banking lags behind in certain aspects to the detriment of its users but Defi is here to fill that gap. A digital ecosystem that aids in the transaction and exchange of financial assets without requiring the services of intermediaries or third parties and that's what Defi does. Let's analyze areas in which Defi sidesteps traditional banking馃憞
Funds Accessibility:
In traditional banking, customers who make cash deposits are not opportuned to have access to their funds as 80% of these funds are used for revenue generation via investment purposes and just 20% made available for customers usage meanwhile Defi gives it's users the privilege of having a 100% access to their assets, this means you can always have your money at all times at your beck and call. Without prior notice, large amounts of money could not be accessed in traditional banking, unlike traditional banking with the "Insufficient funds" tag which comes up due to over indulgence in investments leading to bank collapse, Defi provides access to your money at all instances never limiting your withdrawal amounts
Investments Transparency:
Traditional banks use customers money in ways they do not know meaning that they ain't transparent, meanwhile on Defi we have 100% access to data tracking how our finances are used. Defi makes for transparency as all data are not in anyway linked to a particular group or under one's governance. Each one has the freedom to control and carry out his activities on blockchain without any form of hindrance. Unlike traditional banking where many rely on governmenal authorities and banks to protect their interests, Defi users can proudly say that they are in total control of their financial affairs
Financial disputes/Regulation Adjustments:
Traditional banks do have constant records of theft or robbery of customers finances. When these strikes, funds are drastically mismanaged and lots of readjustments made to suit the current circumstances, at this point laws that could prevent customers from accessing their cash are enforced. Defi isn't known for that, infact it creates a condusive environment for financial transactions, users are enlightened and given insights as to how to control their funds. Although fraud is pertinent everywhere, users are well trained on the strategies used by fraudsters how to spotlight and fight them. In one sentence, Defi keeps its users prepared
Security/Decision making:
If traditional banking has been known for absolute security, I'm not sure the numerous records of robbery would ever be recorded. Defi makes for financial privacy as basic details about a user is confidential and disclosed only to the user thus promoting high security consciousness. Let me compare Defi to a wall made of bricks, to break in isn't easy unlike mud walls which could be washed away even by rainfall and I'll say that's the stuff traditional banking is made of. In the aspect of decision making, traditional banking rarely seek the ideas or suggestions of its customers when to comes to making crucial decisions meanwhile Defi makes room for its users to contribute quota ideas for the growth of the platform, these users sometimes turn out to be investors
Conclusion
From the highlighted points above, Defi has greatly overruled traditional banking in many aspects ensuring global fund transactions, promoting foreign exchange, how does it feel like being charged very little for all the financial transactions you carry out on blockchain? Amusing right. How about concrete interchange of financial transactions to people you've never met without Intermediaries? Defi got that all sorted out. It's true that everything has it's pros and cons and Defi isn't missing out but the benefits is so overwhelming that its imperfections are rarely noticed or called to book. But not all know that such exists, therefore seminars, enlightenment and publicising Web3 should be our aim.