3 reasons why decentralised finance is the way forward to potentially grow your wealth
- DeFi is catching on as people move away from traditional ways of managing money and towards this new financial system built on blockchain technology
- Julian Hosp, co-founder of Cake DeFi, explains why it is worth considering, especially by those who are typically excluded from financial services
From online forums to water-cooler chats, it seems like all anybody can talk about these days are the roller-coaster prices of cryptocurrency, the latest in blockchain design or the most recent NFT (non-fungible token) drop.
For the uninitiated, the world of blockchain and cryptocurrency may seem mysterious or confusing. But strip away the jargon, and decentralised finance, or DeFi, is simply a shift away from the traditional system for managing money. It provides the services and functions of traditional finance (TradFi), but removes the centralised institutions acting as gatekeepers, such as a central bank or government agency.
While the shift from TradFi to DeFi is a gradual process, it has been quickly picking up momentum, as evidenced by the waves of people moving away from traditional ways of managing their money to turn towards this new financial system.
Julian Hosp, the co-founder of Singapore-based fintech platform Cake DeFi, discusses why he believes DeFi is an emerging financial technology worth adopting.
1. DeFi is inclusive and accessible for most people
Within a TradFi framework, there are intermediaries such as banks and brokerages to ensure checks and balances, which can be useful but also restrictive.