The growing interest in decentralized solutions hasn’t yet stopped Fintech from thriving globally. Fintech, a portmanteau of “financial technology”, is more focused on traditional financial services, which are still pretty much centrally governed by banks and other financial institutions.
Things may change a bit in the future. DeFi has recently emerged as a viable alternative to Fintech.
What is DeFi? DeFi is a shorthand term for “decentralized finance”. It is a cryptocurrency industry movement that aims to recreate traditional banking services without centralized technologies. Bitcoin itself is a quintessential example of DeFi, while most other cryptocurrencies have relied on central issuers or organizers. DeFi is implemented through dApps, which are usually built on either a blockchain like Ethereum or a tangle like IOTA.
Fintech adopts a trusted-based mechanism, effectively leaving users with no choice but to trust the mechanism and the organization behind it. This trust-based system is a black box for users, with little transparency to outsiders. In addition, there’re tons of unnecessary auditing procedures involved in the process, which will lead to unnecessarily high transaction fees, significant delays and bureaucracy.
While Fintech is rooted in bureaucracy and trust, DeFi is free and trust-minimized. Unlike Fintech, DeFi is dedicated to reducing the cost of trust between individuals by minimalizing the dependence on trust. DeFi creates a system which gives users the discretion to completely distrust the mechanism or the organization behind it. Users can verify and audit the system in any way, since DeFi is completely open to all users. Moreover, the DeFi ecosystem can free users from myriads of auditing procedures. As a result, it will take much less time to complete the transaction, and the transaction fees will be drastically reduced.
All transactions and mortgage settlements on POKKET are recorded and stored on the blockchain network, and the overall process can also be found and verified on Etherscan. The age of decentralization is coming, enjoy all the benefits of DeFi-age crypto deposit at https://pokket.com/.