2. Decentralized Finance In Three Minutes
• Conventional financial services are centralized systems involving
intermediaries like banks, agents, brokers etc. The involvement of third
parties has increased over the years to meet the complexities of emerging
financial systems. But fewer setbacks limit its perspective.
• For instance, your financial services choices are often regulated by local
jurisdiction corresponding to your geographic location. The involvement of
human intermediaries complicates the process by increasing cost and
adding time delay. You are forced to trust the third party managing your
funds and processing your transactions. More on, the lack of transparency
in transactions increases the security risk.
3. • “Finance” covers the processes of creation,
management, investment of money and
financial assets.
• “Financial assets” denote assets like
stocks, bank deposits and loans which
carry a monetary value.
• “Financial Services” refers to the
operations like banking, lending-
borrowing, or insurance.