DeFi and its opportunities

 

The traditional financial system uses monetary transactions through financial institutions such as banks. On the other hand, decentralized finance enables digital transactions that are not run by any centralized channels and distinct currency values.

“Decentralized finance (DeFi) does not use a centralized authority to maintain currency values across nations. Due to the inequalities observed across the different financial systems worldwide, the necessity of enabling convenient cross-country or cross-currency exchanges was developed,” states in an analysis report by Jenco, a FinTech company that offers decentralized trading and lending services.

The use of DeFi through FinTech will allow global accessibility of various financial services, lower transaction costs, and secure exchanges.

“Utilizing DeFi is more beneficial since users do not have to follow centralized rules. Direct, peer-to-peer exchanges can occur, given that various values are agreed upon irrespective of the current offline values. Dealers or third-party mediators can also be utilized. However, transactional prices are significantly lower than when using traditional and offline institutions,” according to the same report by Jenco.

Through DeFi, most of the population can now have access to financial products that are once only available in centralized institutions. Those who live in far-flung places can also participate in the financial system by only using the internet and smartphone. DeFi has been made possible by FinTech innovations.

Comments

Post a Comment

Popular posts from this blog

Lending with JENCO | Jenco Tech

  The current bottlenecks for decentralized lending services are that it is difficult for traditional investors to understand and participate. That’s why Jubilee Group’s JENCO introduced a toolkit with advanced API to connect to make lending platforms including Poloniex, DDEX, Aave, Argent, Compound, and InstaDapp. This will ensure that participants will accurately lend out their crypto assets and receive it in time without compromising security. JENCO understands how hard and tedious it is for a crypto retail lender to find a platform to help them grow their holdings by lending out their coins. That’s why JENCO Loan is here to cut down on all costs and intermediaries making it easier for lenders to participate in decentralized lending. “There are a lot of new investors eyeing on decentralized lending. But for traditional investors, it is hard to understand the ins and outs of decentralized finance. This is where JENCO Loan comes in. We make sure that traditional
Read more

Decentralized finance in the financial system

 The most significant impact of decentralized finance is the inclusiveness it brings to the people by providing global access to the financial services that were once only available to the wealthier population. This innovative technology powered by FinTech can be used by anyone who has an internet connection and a smartphone. For example, a stockbroker at a top financial firm in the US or a farmer in a remote region in Asia will have the same access to financial services. Barriers such as wealth to invest and proximity to functioning economies, and lack of documentation would diminish.
Read more

Jenco Tech – A platform for your financial innovation

Image
  When it comes to the creation of next-generation financial primitives, Decentralized Finance (DeFi) does just that. By leveraging open source software and composable frameworks, DeFi allows anyone in the world to utilize financial services in a trustless and transparent manner. The team behind Jenco Tech will enable and bridge between non-crypto and blockchain user to “Defi”.
Read more