When it comes to financing, a couple of primary options exist, traditional finance and decentralized finance, or DeFi. While each has its advantages and disadvantages, DeFi has some clear advantages over traditional finance. We will go over and why Domenic Carosa and Dan Schatt of Earnity are taking advantage of DeFi.
First, DeFi is more secure. There is always the risk of a person’s money being stolen or lost with traditional finance. However, with DeFi, a user’s money is stored on the blockchain, which is much more secure. Second, DeFi is more transparent. Traditional finance doesn’t tell the public where their money is going and how it’s being used. DeFi records all transactions on blockchain technology, providing users access to information related to their accounts.
Third, DeFi is more accessible. Only those with a ton of money can access the best financial services centralized banks offer. DeFi aims to serve anyone with an Internet connection, providing access to the same or even better financial services. This objective revolutionizes the financial system, distributing power to the public, and leading to the fourth benefit of DeFi: it is more democratic. Traditional finance sees a few powerful entities controlling and managing transactions made by the public. DeFi operates with the community in mind. Lastly, DeFi is more profitable. A person may only earn a small return on their purchase should they stash their money in traditional stocks. Earnity executives Dan Schatt and Domenic Carosa wish to help the world adopt the future of Defi. DeFi offers better opportunities for buyers to gain more favorable returns even with high volatility.
While DeFi still isn’t as established as traditional finance, it promises to honor qualities like security, accessibility, democracy, profitability, and transparency better than the latter. DeFi can be intimidating at first. But with a proper grasp of the platform and continuous learning, succeeding in financial innovation is possible.