Do You Think With Decentralized Finance (DeFi) is Really Good

[Nomad]

Traditional financial system is controlled by the government, and the government is controlled by a small group of people. Not just in authoritarian regimes, even in the democracies, governments usually serve the interests of big businesses rather than ordinary people. Traditional financial system is totally centralized and is tightly controlled by a few powerful players. However, Decentralized Finance is Just Opposite. It doesn’t rely on banks or government authorities. Do you think DeFi is a better financial system?

 

[arunima]

There are pros and cons to the system. We have seen that with cryptos which is decentralized. It brings it's own convenience and that's why has grown so popular over the years of it's inception. But there are cons that have always posed issues like laundering, illegal and illicit uses, terror funding etc. That's been the reason for it's legal status hanging by thread in many countries.

 

[Urvashi]

Decentralized Finance (DeFi) has definite advantages, but it’s not without risks. On the positive side, DeFi allows users to lend, borrow, trade, and earn interest without traditional banks, giving more financial freedom and access to people globally. Transparency is another benefit, as transactions are recorded on public blockchains, and smart contracts automate processes, reducing intermediaries.

 

[Lolita]

DeFi has its advantages, like cutting out banks, giving people more control, and allowing faster transactions. But it also comes with risks like hacks, scams, and lack of regulation. It’s promising, but still unstable.

 

[Deep]

DeFi challenges centralized control, offering transparency, inclusivity, and autonomy. However, risks like scams, volatility, and lack of regulation remain. With balanced innovation and safeguards, DeFi could transform finance.

 

[Nomad]

Volatility can somehow be managed through the use of stable coins, also, if you do not panic sell, you won't lose anything. However, scams is a bigger threat.