Digital capabilities have shifted the way we perceive commerce on a global level. Brick and mortar chains are closing their shops and moving to web-based only.
People have a vast array of choices in their shopping they’ve never seen before, making it a buyer’s market in almost every way. And financing itself is completely changing.
As third-party providers and online banks become the way of the world, will we finally see a change into decentralized finance in 2020?
We’re Already Almost There – DeFi is Here
Decentralized finance, or DeFi, really hit the scene in 2019 with the popularity of cryptocurrency. It enabled people everywhere to complete their financial transactions transparently.
Bitcoin loudly brought in the rise of the Digital Age into the world of finance, effectively decentralizing the once standard system. With cryptocurrency, you could do anything from investing to borrowing through your WiFi connection, without a middle person in control.
It gave users – and the rest of the world – the freedom of being able to manage their finances directly, without a third party, and they loved it.
This freedom skyrocketed through Ethereum, an added level that enhanced blockchain even more. With this increased ability to program your cryptocurrency and transactions, by 2020, we’ve been able to invest, trade, store, and do everything necessary with our finances in a completely decentralized manner.
In fact, statistics show that the usage of DeFi has increased exponentially over the past year, jumping over 130 percent since its initiation with early cryptocurrency tiptoeing onto the scene.
What Can You Do with DeFi?
The DeFi market is widespread through a huge assortment of apps where you can perform all of your transactions through the touch of a button. This market is powered almost solely through Ethereum, making it secure and transparent.
In today’s DeFi market, users can complete transactions like:
- Changing ETH currency to Ethereum tokens through private, decentralized exchanges that are completely secure
- Holding crypto assets as investments that grow and compile interest
- Protecting yourself from issues that occur in smart contracts by investing in insurance
- Gambling through betting on sports and other prediction market platforms
- Keeping your funds stored in stablecoins, which are crypto-backed and important during major market volatility
- Adding hedging to crypto asset portfolios through decentralized trading platforms
And It’s Only Getting Bigger
Now that 2020 is here, with the major changes it brought with it, DeFi is only growing in its offerings and consumer demand.
Extreme market volatility has shown its face, making investments through stablecoin and cryptocurrency the popular theme of the year.
Long-term investors and newbies are ready to take advantage of all of the security that DeFi has to offer. With so many hackers becoming cyber-intelligent in ever-increasing ways, secure platforms are essential.
Open finance is operating in Europe and on the table in many other countries. The entire way we perceive and transact financial exchanges is shifting, and as it does, investors are jumping on board.
2020 has brought many changes with it, and we expect to see it truly become the year where decentralized financing takes over standard banking.