Experts Explain How DeFI Could Redefine Modern Banking

Experts Explain How DeFI Could Redefine Modern Banking

Decentralized finance, also known as DeFi, has been a term of argument for several crypto optimists and critics for several years now. This new technology is opening new opportunities and projects in the digital assets world. DeFi promises the redefinition of traditional banking into the new world of blockchain technology to crypto investors. Ultimately, it has opened doors for reinvention and change in the unpredictable cryptocurrency space.

The novel term is new to many people; the basic protocols are reshaping the crypto space into regular banking. Decentralized finance assures saving and earning interests in their positions. The technology also visualizes helping individuals take out crypto loans and complete other financial obligations.

Why DeFi is different from traditional banking

DeFi helps reduce the hassle of intermediaries in regular banking by working on a decentralized platform that develops safe, fast, and effective banking. It also helps trade and tokenizes real assets for the people. It safe to note that there has been a lot of buzz on DeFi technology, and several investors have taken up projects under the line. As the first cryptocurrency, Bitcoin started several years ago, opening opportunities for sectors in the industry like the DeFi project.

The growth of technology has been like no other, ever since its birth, kept rising rapidly. It is not surprising that DeFi projects in existence were only worth around $200 million two years ago. A year after that, the value rose to just beneath $700 million, but presently, assets locked within the technology’s space are over $13 billion, which shows extreme growth of up to 1700% only with one year’s length.

The abrupt growth of the technology did not come without doubts and criticism. Some claims suggest that technology is in a speculative bubble. There was also a significant rise in funds for unaudited DeFi projects during the birth of this technology. Some reports on the unnatural growth of the platform; others believed it growth was expected.

OnigiriSwap’s gradual rise to fame

The CEO of Binance, Changpeng Zhao, acknowledged that DeFi might be a bubble, but he believes that the technology is here to stay. The CEO made these claims in his recent interview with RBC. He said that some specific projects in DeFi might be a bubble but was sure that these claims would not end DeFi in its entirety.

Zhao is optimistic that the new technology has growth potential and will do similar goods like ICO, which created significant tokens. He linked the increased popularity of Bitcoin to the rapid rise of DeFi.

On the buzz about Tokens, a new DeFi project called OnigiriSwap showed the technology’s potential and how rapidly offering spaces are surging to prominence. The recent birth and launch of the OnigiriSwap website gained a lot of attention from crypto investors.

It is equally important to acknowledge the website’s new listings on several charts. In a recent post on Medium, OnigiriSwap spoke about its plans and explained that it was not trying to create new technology. Even with its clarification, crypto enthusiasts are keeping a watch on OnigiriSwap’s latest projects. Ultimately, DeFi is working hard to create a better banking space.

David Pražák