How DeFi Is Going to Change the Fintech World

The internet is going through its own kind of evolutionary process. In 2021, it reached a new landmark: Web 3.0. This occurred mainly thanks to blockchain technology, machine learning, and artificial intelligence. As a result, businesses, operating models, bank systems, and financial service providers needed to change their way of conduct to keep up with technology. The emergence of Bitcoin back in 2009 also had a lot to do with it.

The birth of the first digital token led to the fast development of financial technology, i.e., fintech. Traditional institutions started implementing innovative technologies into their interfaces, and many new fintech companies were founded. Nowadays, we experience a change of even a greater magnitude: Businesses can already feel the influence of decentralized finance (DeFi), a result of blockchain technology. However, there’s much more to come: A wave of new fintech innovation is ahead of us, and it will lead to a more efficient and accessible industry. Let me share with you some challenges and opportunities that, in my opinion, await the fintech industry in the Web 3.0 age.

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How does DeFi benefit the fintech world?

Up till recent years, all financial services had been monitored and harnessed by national central banks. However, with the integration of DeFi with blockchain technology, we were introduced to a financial system that is not controlled by the authorities, meaning they can’t be shut down or maneuvered by governmental institutions. That’s a great advantage also because people can make transactions without using a mediator’s services. All transactions are publicly recorded on the blockchain, making them more transparent.

DeFi unlocks several Web 3.0 potential abilities, such as a more user-friendly onboarding process. Businesses will benefit from further web development since they’ll enjoy fewer data storage security issues. As an outcome of the Web 3.0 contributing technologies, fintech companies will be able to:

Web 3.0’s foundations are artificial intelligence, IoT (Internet Of Things), and blockchain technology. When all these work well together, fintech companies can rest assured that transactions are secure and transparent. Moreover, Web 3.0 helps financial technology businesses lower the cost of dealing with server failures and other issues.

Web 3.0

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The challenges awaiting the fintech industry in the Web 3.0 reality

The digital era indeed allows fintech to utilize its potential to the fullest. However, it also poses some significant challenges in front of it.

Blockchain technology

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The potential that Web 3.0 brings with it to the fintech world

DeFi brings an abundance of new financial applications and services built on the Ethereum blockchain, opening a wide array of new approaches for interacting with financial services. Traditional financial infrastructure is slowly but steadily being replaced with a decentralized and open system. Eventually, this will lead to a more equal and inclusive financial sphere, entirely changing how we trade.

Having that in mind, this is just the tip of an undiscovered iceberg. I believe that eventually, DeFi will become the primary way for people to interact with financial systems. Traditional infrastructure will be left behind.

As time passes, democratization in trading is becoming increasingly important to inventors. Luckily, the current trading reality allows more people to invest in assets that weren’t considered feasible until a few years ago. As one of the leading global fintech companies, we already see the potential. One of our current main goals is to offer new types of DeFi-related services.



Angel investor. Real Estate. Fintech

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