Decentralized finance, otherwise known as DeFi, sits at the intersection of financial products and services with decentralized networks and open protocols. The implications of DeFi will be pronounced across both developed and emerging markets.
- In developed markets, DeFi will provide greater choice to consumers, strip out costs from the legacy financial system, and bring greater liquidity and product innovation to capital markets.
- In emerging and frontier markets, DeFi will provide a more secure store of value and bring banking-style services to the 1.7 billion adults who lack access to any formal financial system.
At FinTech Collective, we believe that DeFi will be an infinitely more durable phase of development and adoption for blockchain technology than anything we have seen to date.
Sean Lippel of FinTech Collective breaks this down in an amazing article.