DeFi, or decentralized finance, is already a growing force in the world. For many, it is the perfect alternative to traditional financial institutions that are known for their notoriously slow and ineffective processes. In such a situation, it is not very surprising that many people are considering DeFi to be the future of finance.
According to a report of Bitwise, DeFi is increasingly becoming a viable alternative to traditional financial institutions. While there has been much growth in traditional finance sectors, the underlying methods and processes are the same. They still rely on outdated and archaic methods to process transactions. As a result, huge amounts of money are lost every year due to delays and errors. DeFi has the potential to change this and is already proving its merit in various sectors.
Blockchain, the underlying technology of DeFi, has the potential to transform various day-to-day applications. It is a technology based on collective efforts and coordination and has proven to be much more effective than any other existing technology. Blockchain is already making groundbreaking progress and is not very far away from being a part of our everyday lives.
DeFi will bring blockchain to regular people, and they can reap the benefits of this disruptive technology. As we head into 2022, we can expect to see blockchain-based innovation by many startups and big firms. No matter which perspective we take, we cannot ignore the inevitable rise of blockchain. The earliest adopters will be at an advantage when the technology finally becomes a part of regular households.