Most people start their digital finance journey on a centralised platform. But with the rise of blockchain technology there are also decentralised finance platforms available on which people can opt according to their requirements.

In contrast to centralised systems, which are more secure and easier to use, decentralised systems require proper knowledge of their use and are prone to risks. But still many people are opting for DeFi as they want more control over their assets.

Open banking provides financial services to customers through APIs with a direct link with banks. The goal is to provide additional services while remaining within the existing financial system.

While DeFi is a completely separate ecosystem separate from current financial system.It requires to deal with counterparties directly while delinked with current financial system.

1- Trustless smart contracts give you power over your assets .

2- No need of custodians , no need to go through complex KYC procedures.

3- Tokenisation of voting powers give more power to community reducing risks of bank runs.

1- Difficult to check every smart contract for errors and hacks.

2- Self custody involves risk of losing access to assets .

3- More education and awareness needed before common man can use.

DeFi is still an emerging thing which will grow with time creating new opportunities in field of finance , with upcoming innovations we expect it to be more user friendly , more safer to use .

As for the current banking system , with rise of DeFi we can see a huge shift in working of these institutes . Even CBDC’s can push these institutes to adapt much faster in future than currently anticipated pace.

" With some innovation, with some difficulties, change will come. But those with an open mind will ride the wave ”

nft://137/0x2953399124F0cBB46d2CbACD8A89cF0599974963/?showBuying=true&showMeta=true&size=large