By Jason Wu, CEO of DeFiner.org
DeFi, or decentralized finance, aims to disrupt the current financial system by providing new solutions on a public blockchain. DeFi is reshaping existing traditional financial systems, which are defined by centralization, and allowing people to interact directly on decentralized, secure, and transparent protocols. The movement’s very nature takes the issue of trust out of the hands of humans and uses the code it runs upon to create total security. By using blockchain technology, single points of failure are eliminated as the data is recorded instantly and spread across thousands of nodes, making malicious attacks or corruption nearly impossible.
Exciting new developments offer a glimpse at a new era of finance - one that is faster, safer, more cost-efficient, and more secure. With 1.7 billion unbanked adults in the world having limited access to financial services or support, a huge erosion of trust in the banking sector, and a looming economic crisis anticipated as a result of the COVID 19 pandemic, 2020 may well be the year for DeFi to come into the mainstream.