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DeFi—a four-lettered abbreviated moniker given to a burgeoning industry called decentralized finance—has been touted as an industry that will supposedly right a great imbalance of sorts. According to a World Bank report published in 2017, around two billion adults around the world do not have a bank account or access to financial institutions. Despite efforts, this imbalance in access to global finances continues due to either natural, geopolitical or man-made causes which, of late, have only added to this problem.
The bane of the problem, in many ways, seems to point to oligarchical financial systems that have restricted some and placed high entry barriers and institutionalized greater control over people and their money. DeFI, financial applications that run on blockchain networks, aims to remove this high-ended gatekeeping and open up the financial sector not only to those who are currently unbanked, but also to those who are currently tied to the custodial and centralized financial systems.
It is this crowd of people that have curtailed access to finances, who will benefit greatly from the DeFi movement and drive worldwide adoption. There are some hurdles, as explained below, and EasyFi Network has envisioned to solve most of them via a unique permission-less money market protocol for digital assets that has been completely built upon permission-less or open blockchain networks.
Traditional lending: issues upfront
A key imperative in the growth of economies is the need