Coinbase: DeFi To Eclipse The Traditional Financial Platforms
We could say that Coinbase is a bit biased since it is a cryptocurrency based platform. Nevertheless, it is encouraging for it to affirm what many of us already believed.
In a recent article, it was stated how Coinbase feels that decentralized finance (DeFi) will eclipse the traditional financial system. The spread of DApps relating to finance are starting to make some waves.
The key to all of this is the accessibility across the world that DeFi provides. There are a number of major advantages that are helping in this effort.
One is the fact that DApps are created with the global mindset. Since a decentralized blockchain is not relegated to one country, the ability to transcend national borders makes access much greater. It also presents a much easier platform for development.
We also see interoperability as applications start to span not only countries, but also different blockchains. Database can be located in different areas yet still operate without a problem. DApps have the ability to take advantage of this.
“Business operations are not controlled by a single organization. The business rules are programmed using smart contract languages. The source code resides on the blockchain, making it more transparent and auditable,” .
https://oracletimes.com/coinbase-says-decentralized-finance-takes-over-traditional-financial-platforms/
Overall, we are seeing a lot of optimism regarding DeFi. The growth rate over the past year is what is justifying the outlook to many.
According to Defipule, the present amount locked in DiFi DApps is $666 million.
Naturally, this is a minor amount compared to the traditional financial system. However, it is important to note this is only what is happening on Ethereum. There are other blockchains that offer the same smart contract capability while also seeing some of the same services offered.
As we know, there are a variety of Steem services that off a great deal of what the rest of the crypto world is discovering. For example, all Steem that is staked provides a return in that it is continually adjusted for the inflation rate. We also see projects such as SPInvest, which is an investment club that leverages the ability to grow STEEM for the benefit of the club members.
The financial services industry have netted trillions of dollars by establishing itself as an intermediary for the entire financial world. Almost everything that is done is through a third party. For this service, a cut is taken by the company provided said service. While it is not a lot, in most instances, on a percentage basis, it does add up when you think about the trillions of dollars each day that takes place in all the financial markets globally.
In other words, there is a lot of money moved and a small percentage really adds up.
DeFi is established on the idea of peer-to-peer transactions. With the blockchain acting as the third party, there are no fees paid.
This puts things on a completely different level.
Coinbase is one who foresees a massive explosion in DeFi applications over the next couple years. Personally, as more cryptocurrency is distributed, I see this sentiment playing out.
People are going to want to put those tokens to work.
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Posted via Steemleo | A Decentralized Community for Investors
