Who else noticed? Did you?
Well, with the rise in utility of both Centralized and Decentralized Exchanges (Cex & Dex),the traditional banking system is fast fading into oblivion. One is sure to have our traditional banks as near non-existent in the closest possible future, buttressing the need for man to be dynamic else he lose relevance.
You must have heard about the ongoing crisis between Russia and Ukraine, it has in no small means, hurt the economy of one of both nations;that is, if not both. There was and still is some posts going viral, basically by Ukrainians citizens and residents alike), lodging complaints about their inability to carry out transactions;mostly financial, simply because their monies are stuck with the banks.
Centralized and human controlled banking once appeared to be the future, mind you, this was decades ago...as generations voyage through life, they find/invent new means to ease their path and style of living. Speak of the devil! In the early times, how did man carry out financial transactions, what was our means of exchange.
Records have it that at a point, we exchanged precious stones, known as cowries as money. Later on, we moved to 'barter trading'; it was/is a system where you can trade your commodity for another, depending on the need of your recipient.
Let's make this a bit easier...imagine you've been invited for a party or meeting as the case may be and one requirement to gaining access to the event is by gifting two goats to the host. You have a poultry, and have a considerable number of chickens, but you can't offer chickens at the event, what do you do? Look for someone who has goats right? You meet a person who has goats and strike a deal exchanging some chicks for two or three goats right? Kudos, now you can gain entry to the meeting.
That is trade by barter.
Time went by and man saw the need for improvement, then came coins.
Coins have its variants in value; Gold, silver etc. In a much as it kept the stress of barter trading afar off, making use of physical coins still had its downside;as we advanced, better ways/means were yet again discovered and that is the conventional currency in use at the moment.
We have the $ Dollar, £ Pounds, ¥ Yuan and ₦ Naira notes and a host of others. The introduction of currency notes was accompanied by what we call 'traditional banking system', it appears the note type of money is one of the longest serving currencies with respect to time duration, in essence, notes have been passed down generations to generations and yet is still very much existent.
That's not for long though! If you've lived in a developing country, with Nigeria as a case study, you must be conversant with the hassles associated with the TBS, you know, waking up early to beat traffic and get to the bank on time, on arrival you meet a queue that seems unending, the fatigued bank staff who can yell at you in the most callous manner and appear not to effectively carry out their duties, probably cos they're short-staffed and often time excessive workload and all other whatnots.
You must have switched banks for the umpteenth time just to cut the charges and yet, it all seems to no avail, cos every trad bank has a way of ripping you_-_is it deposit limit/charge, utility bill, card maintenance fee, acct enquiry bill... TBH, there's just endless ways of losing your funds to the banks.
This is where DeFi comes to play. Just like our messiah, DeFi meaning Decentralized Finance is here to salvage the remnants of your funds and craft out the perfect 'future of finance'. DeFi, is what many may want to call crypto currency, it is an attempt to put you in the pilot pit/ drivers' deck of your finances.
Literally, DeFi brings power back to you. Talk of anonymity, transaction speed, unlimited deposit/withdrawal with minimal charges. TBT, there's limitless possibilities when you talk DeFi.
Aiit, chill with this example, let's say you want to send some funds to your partner in a foreign land, you may have to go through the bank Now we have a few systems like 'money gram' and 'western union' which facilitate your transactions, but they still have their flaws don't they? Truth is, the processes will be too many, one has to go to the bank, carrying with him, lots of vital documents, you're likely to be directed from office to office and then again, you wait for an absurd 'number of working days'
You're kidding right?
Working days. Meaning weekends are exempted from the count.
Do your own analysis, if you begin your transaction process on a Thursday, and by Friday you're not done, invariably, you'll have to wait till the following week. In DeFi, this does not happen,there is high level anonymity and yet transactions are open for all and sundry to peruse.
Isn't that cool?
Unlike Trad banks, there are no closing hours, in essence, you can transact seamlessly at any time of day, also transactions cannot be altered. How is this so?
Blockchain Technology!!!
For clarity, let's assume there are 10,000 PCs holding a particular data,as in transaction record, and a cyber criminal does something fishy like unloading someone else's account into his, with the technology behind the Blockchain Ecosystem he( the cyber criminal) is very traceable.
The Blockchain is built such that everybody can see all transactions going on or that has ever taken place. If this cyber criminal (hacker/fraudster) wants to clear his transaction from the records he needs access to about half of these 10,000 computers. From a logical stand point, this is nearly impossible considering these computers are spread the world over.
PS
This is just my opinion on finance and the future,hope you see where finance is headed, join the moving train now.
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