Decentralized Finance (DeFi) and its potential to disrupt traditional banking

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When I say decentralized finance has the potential to disrupt tradtional banking what exactly does it mean, what am saying in effect is that decentralized finance could stop the continuity of traditional banking, it could interrupt or has the potential to replace it completely thereby disrupting it and all who has blind faith in it because defi actually offers something much more better.

Decentralized finance provides much more that traditional banking do not from transparency to accountability to accesibililty and to even reduced cost and so much more, infact where traditional banking fails decentralized finance makes up for therefore the has the potential of disrupting the traditional banking system and I will be explaining in details further on how they could do this and the features that makes decentralized finance able to usurp the positions of banks today.

How Decentralized Finance could disrupt tradtional banking system

Well while this could happen it's because decentralized finance has a lot of improved services in comparison to traditional banking and this might include.

Removing of intermidiaries is one way decentralized finance could potentially disrupt tradtional banking, the middle man which is the traditional bank is the common way people transact with each other today and ofcourse they often take up their own charges as the cost of facilitating this transaction for us and for keeping our money for us but in decentralized finance transactions are done in a peer-to-peer manner which means we transact directly with the other person without any third party so that means reduced or no cost and the banks and their roles won't be needed no more hence they could be replaced since there is a better alternative that's decentralized finance (defi).

There are many people today who doesn't have access to banks due to either lack of infrastructure or living in a third world country and the distance to the only bank close to the location is far out or due to other restrictions they are not able to access and be included in the financial services this is actually eliminated completely in defi as all has free access to financial services here, all you need is a device and an internet connection and you can access financial services at comfort without going through much stress. Decentralized finance opens an avenue for financial inclusion of all the masses in respective of location.

Another good reason why defi is a much better and improved option than tradtional banking is that it offers a steady access to financial services that's to say there is no closing hours like the traditional banks which sometimes closes for the weekend and even for the weekday has closing hours and closes during holidays that's not the case with decentralized finance here financial services are open 24/7 literally at whatever time we want to access any financial services at all we can its open and has offers continuous to financial services with no shutdown inrespective of what's happening on the world.

When it comes to security defi is much more secured than the traditional banking system that's due to the fact that the traditional bank are a centralized entity making them more vulnerable to attack unlike defi which is built on blockchain technogy meaning it's decentralized in every sense of the word decentralization and also the blockchain is a technogy that has a robust security system which means that it's much more harder to breach due to being decentralized than the centralized banking system and there is more transparency here too every thing and every transactions are visible for all and there is nothing shady or hideous on this system making them a better alternative to traditional bank.

Conclusion

Defi has much more better potential to really disrupt traditional banks and indeed has the potential to be the future of financial services a world where the banks would no longer be needed but then defi still has some of it's challenges which when tackled properly could better put it in a limelight to replace the traditional banks and I would talk more on this challenges and how it could be solved next.