March 11, 2022 0 Comments Tech

Earnity & Domenic Carosa Ask: What is the future of DeFi?

DeFi, or decentralized finance, is a continuously developing technology founded on the distributed ledgers used by cryptocurrencies. While the future of decentralized finance can not be known for certain, we may be able to glimpse a possible future in understanding why this technology was created.

The problems of traditional finance are varied, but they can be largely summaries into five distinct categories:

  • Centralized control
  • Limited Access
  • Inefficiency
  • Lack of Interoperability
  • Opacity

DeFi is intended to solve these problems. Many commentators and cryptocurrency enthusiasts triumphantly herald decentralized finance as the turning point where traditional financial institutions lose their power as control over money is returned to the people using platforms such as Earnity, by Domenic Carosa & Dan Schatt.

As far as the future of DeFi is concerned, the five categories above provide us with some insight into what that future may look like. A successful future for DeFi will likely usher in a time where individuals retain more control over their finances than at any time in our history. Gone will be the days when some are prevented from accessing the financial system. Individuals will be free of the heavy banking fees and low-interest rates that have plagued main street banks for decades.

Naturally, the vast majority of people are excited by the possible benefits of DeFi and remain hopeful for its future. However, while that future seems bright, it is impossible to say with certainty whether it will ever come to fruition.