Exploring the Revolutionary Impact of DeFi on Traditional Banking and Financial Institutions
Introduction to Decentralized Finance (DeFi)
- Introduction of DeFi as a financial sector innovation that leverages blockchain technology
- Explanation of how DeFi differs from traditional finance through decentralization and transparency
- Discussion on the explosive growth of DeFi platforms and increased investor interest
- Overview of primary components of DeFi: smart contracts, decentralized applications (dApps), and peer-to-peer networks
Traditional Banking Systems: A Brief Overview
- Overview of the conventional structure of banking systems, including centralization and intermediaries
- Description of the traditional roles of banks: deposits, loans, investments, and payment services
- Challenges faced by traditional banking, such as high operational costs, slow transaction times, and lack of accessibility for the unbanked
DeFi’s Disruption to Traditional Financial Services
- Detailed examination…