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3.The advantages of Defi
With decentralized finance, anyone with an internet connection and a smartphone can access financial services. There are many barriers that prevent access in the current system:
  • Status: Missing citizenship, documents, certificates, etc.
  • Wealth: High cash inputs are required to access financial services
  • Location: Long distance from active economies and financial service providers
Here are the ways decentralized finance will have an impact on the world:
  • Greater access to financial services globally
  • In a decentralized financial system, a top trader at a finance company will have the same level of access as a farmer in a remote area.
  • Cross-border payments at low rates
  • Decentralized finance eliminates costly middlemen to make money transfers more affordable for the global population.
  • Through decentralized financial services, the remittance fee can be less than 3%. Meanwhile, in the current system, sending money across borders is extremely expensive for everyone: the average global remittance fee is 7%.
a. Improved Privacy and Security
In decentralized finance, users have the authority to monitor their assets and be able to transact securely without confirmation from a central party. Meanwhile, in the current system, surveillance organizations put people's assets and information at risk if they are not secure.
b. Censorship resistant transactions
• In a decentralized financial system, transactions are immutable and blockchain cannot be closed by central institutions such as governments, central banks, or large corporations.
• In places with poor governance and authoritarianism, users can divest into the decentralized financial system to protect their wealth. For example, Venezuelans have adopted Bitcoin to protect their wealth from government manipulation and hyperinflation.
c. Simple to use
• Plug and play applications will allow people to intuitively use decentralized financial services without the complexity of a centralized system.
• With the decentralized system, a woman in the Philippines can take a loan from the United States, invest in a business in Colombia, then pay off the debt and buy a home - all through possible apps. Interactive.
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