The post Why Investors Are Betting Big on DeFi Before the Next Bull Run appeared on BitcoinEthereumNews.com.

In the modern era of digital transformation, companies are pressured to innovate constantly to remain competitive against tech-enabled startups and fast-moving unicorns. This has led to the rapid decrease in the lifespan of companies at the pinnacle of success, leaving room for new technologies like Decentralized Finance (DeFi). While in 1958, organizations listed in the S&P 500 had an average stay of 61 years, this figure plunged to a only 18 years presently. The speed of disruption is hastening, and it is projected that by 2027, 75% of the companies currently listed on the S&P 500 will vanish. DeFi to Take Over the Finanacial System In the aftermath of the 2008 Global Financial Crisis, the financial system has been grappling with numerous challenges including inclusion and digitization. Traditional Finance (TradFi) has shown resilience but at the expense of financial inclusion. According to the World Bank, 1.4 billion people worldwide do not have access to a bank account. This is barring “more commonly women, poorer, less educated, and living in rural areas” from essential financial services and perpetuating the cycle of poverty. “To reach them, governments and the private sector will need to work hand-in-hand to forge the policies and practices needed to build trust in financial service providers, confidence in using financial products, new tailored product designs, as well as a strong and enforceable consumer protection framework,” Leora Klapper, Lead Economist in Development Economics Vice Presidency of the Global Findex report, said. DeFi is a blockchain-based form of finance that does not rely on central financial intermediaries. These include brokerages, exchanges, or banks to offer traditional financial instruments. Instead, DeFi offers a plethora of financial services. From lending to borrowing, and trading within a blockchain, DeFI ensures transactions are publicly available, transparent, and immutable. Read more: TradFi vs. DeFi: Everything…

---

Filed under: News - @ November 5, 2023 5:24 pm