How do I use web3? DeFi DeFi is changing the digital landscape: here’s why it matters

DeFi is changing the digital landscape: here’s why it matters

DeFi provides a decentralized financial marketplace accessible to anyone worldwide via their phones. In contrast, traditional finance is often associated with gatekeeping access to financial services, with high barriers to entry, such as the requirement of an address or credit score.

Let’s take a real-world scenario to illustrate this point.

Now, someone running a flea market booth in Jordan can borrow funds at a competitive rate that a banker in England would have the same access to, just through a decentralized lending protocol from his or her device.

Additionally, someone can place funds into what is called ‘yield-farming’ as a hedge against the inflation of their domestic currency. Yield farming basically means lending or borrowing crypto on a DeFi platform to earn cryptocurrency rewards in return for their services.

So people who were previously excluded by the existing financial system now have the ability to get involved. DeFi is more efficient, gives more access to opportunities, and is more transparent than traditional finance.

In short, DeFi can help level the playing field for people around the world trying to get access to secure financial services without the need to be at a certain financial level. This is what the promise of web3 is all about: inclusion.

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