FinTech is the abbreviation for financial technology. As it suggests, FinTech refers to technology that supports and improves financial transactions and processes. If you conduct online banking or mobile banking transactions, you would have used FinTech – smartphone apps, algorithms, and software are examples of FinTech.
Is DeFi Part of Financial Technology?
DeFi transactions can’t happen without a financial platform
- Borrowers need to go somewhere to obtain funds, and these funds are received from people who deposit cash in accounts
- Decentralized lending platforms fall under the umbrella of decentralized apps (dApps) that connect borrowers and lenders
- In this way, a DeFinance works similarly to a financial institution
Projected Global Mobile Payments Revenue Expected Growth
Mobile payments are expected to snowball in the next five years, registering a 250 percent increase in revenue from 2020 to 2025.
- From a market point of view, Fintech users are still relatively low in some parts of Europe, but will become a significant market leader in the European continent within the next few years
- Blockchain technology will experience growth until 2030
Is DeFi the Next Big Thing?
DeFinance has a greater risk of losses, and the transaction flow is unknown to whom and where
- There are no regulations or regulations in the blockchain world, so it is unknown when someone has cracked the security code on smart contracts
Financial Technology vs. DeFi
In a Decentralized Finance environment, there is no intermediary between the borrower and lender
- Borrowers and lenders are connected directly
- Lenders decide the percentage of their funds available for borrowing and the loan period
- There are no minimum deposit periods to adhere to
- Digital collaterals can include other cryptocurrencies and digital assets
Project Growth in 2021
Some projects have already reached impressive numbers and growth
