Cryptocurrencies are a fantastic invention of the modern age. With everything going digital, business and marketing should also take a new shape. Bryan Legend is the pioneer of the exceptional method of decentralized finance. Moreover, his brainchild Clever DeFi clarifies several doubts arising in the minds of many people. Thus, it is a remarkable initiative to draw more investors towards the digital platform. Currently, transactions worth more than 100 billion dollars are conducted using cryptocurrencies. In fact, the value of Bitcoin is rising every single day. So, it is a clear sign that the global economy is undergoing a drastic change in the methodology. Moreover, blockchain technology is replacing the traditional banking system gradually.
Deficiencies Of The Traditional Banking System
Bryan Legend observed that the traditional banking system is suffering from various deficiencies. As a result, it is really important to know the root causes. This paves the way for innovative blockchain technology. DeFi platform is mainly based on this wonderful technology. Initially, the main motive for the establishment of a banking system secured the transfer of the securities. However, the subsequent times showed some instances of bankruptcy. Almost all countries suffered the harmful effects of banking in some way or the other. Therefore, at present, the whole world wants a big change in this traditional system.
Blockchain technology is capable of securing the storage and transfer of funds in a hassle-free manner. Moreover, there is no need to provide central insurance to bank deposits. Legend expects a reduction in the instances of multiple frauds and other vulnerabilities present in the previous system. There is a risk of reversing the transactions by the issuing even if a fraud persists.
The Beneficial Impact Of Blockchain System
The interconnected networks are the fundamentals of blockchain technology. Therefore, there is an effective distribution of all the information among the decentralized networks. Thus, it is convenient to record various transactions instantly and store them after proper verification. So, missing out on any transaction will be very low. Moreover, minimal human intervention is bliss for users. However, in the current centralized banking system, the failure of one system can lead to the disruption of the entire workflow. But, in blockchain, copies are there. So, there will not be any interruption even if one node fails to respond.
Bryan also realized that the new methodology would facilitate a smooth transfer of securities. This will result in an optimized management system. Furthermore, banks can have an improved liquidity management system. The reconciliation of data can occur in an efficient way in the new environment. Every transaction will be more secured and cost-effective. The smart contracts are the best outcome of the modern approach. The international transactions will not be much expensive now. Therefore, the new technology will definitely make the banking business more efficient and profitable.
Acceptance By The Largest Banks
Today, most of the reputed banks worldwide are adopting blockchain technology in their daily operations. Moreover, they are rapidly spreading the benefits of this new culture among the fellow banks too. Some of them include Citi Bank, UBS, and many others.