1. It’s a new type of market
Blockchains, smart contracts, and DeFi have created a new type of market. One that is fully automated, transactions and outcomes can be defined in code logic and then these can be executed automatically when the conditions are met.
The way money can be programmed in DeFi is beyond the capacity of similar systems that are used in traditional finance. In that world, the logic is outside the money system itself, while in DeFi programmability is part of the network from the ground up.
2. It’s a global market
The DeFi world never stops, in the most true sense, it is a global and free market. It operates in all parts of the world without any regulatory barriers, it’s open 24/7 and it has a constant stream of volume. The DeFi ecosystem is global in a way no other market has ever been.
Any professional who wants to trade and find opportunities in an almost endless market must know DeFi. The opportunities in this type of environment are far more frequent and bigger than in traditional markets. Especially for those not living close to major financial centers.
3. It’s where the innovation is happening
Automated market makers (AMMs), synthetic assets, liquidity pools, flash loans, and much more are some of the innovations that have already happened in DeFi. The ecosystem is filled with new projects that launch weekly, each trying to add some new functionality previously thought impossible with millions of users and large transaction volume.
It is DeFi where the frontier of financial services is located. The next big changes will happen in DeFi and not in the major banks. For those who want to be at the edge of the next wave of changes in the financial industry.
4. Transparency
Ledgers in traditional financial institutions are black boxes. Only regulators, lawyers, or accountants working for the institution ever see the complete picture of those transactions. This means that the outsiders are at the mercy of those facts that are disclosed by law or on other particular occasions.
The DeFi world is completely the opposite. Anyone can audit a trail of transactions or look for opportunities in the on-chain data. The ledger is 100% visible and transparent, it is both a major boost to security and democratizing information.
5. DeFi gives full control of assets
For those who use the blockchain network, assets are at all times in their possession. There are no intermediaries, and that means no custodial third parties that can remove or take control of an asset not owned by them.
Transfer and ownership are also simultaneous. In traditional finance, in most cases when an asset is transferred the ownership of said asset is not complete until the books are settled. That can be several days or weeks after the transaction. In DeFi both things happen at the same time as a transaction is settled by the ledger at the moment it happens.
Those are the advantages DeFi offers for those wanting to learn about the new frontier of finance. It’s a new type of market, one that cannot be replicated by any other type of technology and one that will become the standard for the future.
