Decentralized finance or DeFi is the next big thing in the world of finance. Countries like Switzerland, Australia, Malta, and the USA are undergoing a massive disruption to adopt this robust technology. As the customer demands are growing and their way of interacting with finance applications is also taking a shift, DeFi is playing a pivotal role.
This technology is eliminating the former finance shortcomings and allowing companies to establish more complex finance applications backed with blockchain technology. Apart from direct transactions, DeFi is making loans, crowdfunding, derivatives, and insurance more secure and it gives more control to the respective stakeholders.
DeFi Lending Applications Save Costs
DeFi lending is something that empowers your business for the future. DeFi-based lending depends on the core advantages of the Ethereum blockchain, which helps in establishing a secure connection to source and source funds that are incentivized with different crypto rewards. DeFi can help your organization in optimizing the transaction costs to fractions and it will make your business processes future-focused.
Financial services like compounding interest rates and no-collateral loans which are highly interest-intensive can be optimized with this decentralized technology. With an extensive P2P network, companies can optimize their cost on intermediate fees and other third-party transaction charges.
DeFi lending is at present experiencing massive growth in organizations based in Switzerland and Malta as the government has already approved various decentralized rules. Sevenbits can help companies in building a secure and fast private DeFi network for your organization which will offer control to owners, stakeholders, and customers.
DeFi's Decentralized Exchanges
Decentralized exchanges or DEX are one of the most significant advancements in the blockchain business. It allows users to be consistently in charge of their assets, which are available in their cryptocurrency wallets. Having your own decentralized exchanges prevents any kind of external intervention into your system and establishes trust.
In countries like Switzerland and Australia, the average decentralized exchange is around $536 million a month and the numbers will grow in the future. Customers are also preferring these modern decentralized payment systems than the traditional ones.
Having your own private DEX not just eliminates financial frauds but it also offers all-time availability to funds and related data to users and stakeholders. More companies are now opting for their private wallets as they are more secure and help in building a more transparent ecosystem.
Better Asset Management
DeFi brings in a wide range of unmatchable advantages to asset management that helps you serve the customers of tomorrow in a better way. Right from asset audit automation to wallet threat supervision and custom asset-related products, this technology is highly secure than the traditional one.
With a decentralized finance-based asset management tool for your organization, your customers can interact with core financial services from all over the world. Unlike traditional asset management which is regulation bound, DeFi runs seamlessly.
However, one concern that DeFi comes with is that the customers are entirely liable for managing their funds as it's a highly decentralized process. But a business owner can always add an extra layer of safeguard to mitigate human errors. The DeFi asset management trend is growing worldwide and it's becoming more user-oriented and faster.
The advanced applications of DeFi are here to stay with us and we at Sevenbits can help your company take a leap in digital space with it. Our Blockchain Center of Excellence (CoE) team understands your requirements and evaluate it with market trends to get the best performance for your business growth. Know about how DeFi can transform your business from our experts and we will be happier to guide you through. Get in touch with us at firstname.lastname@example.org to know more.