Blockchain offers tons of solutions to applications like supply chain and finance. Experts believe it can revolutionize the current financial system with decentralized finance as it looks to eradicate the many flaws that the existing economic systems have. It promises to bring the financial system to the unbanked so that they can enjoy its facilities in the future.
Keeping that concept in mind, Burstex.io, the first crowd-owned exchange in the world, is providing profits to all its BEX token-holders. Developed on the Burst blockchain, it's the fastest, eco-friendliest, and most secure blockchain ever. With blockchain becoming the critical figure in decentralized finance, this site is giving you the power to tokenize your assets and make the most of small share markets that result in million-dollar profits.
Understanding decentralized finance
Every country consists of various financial services like savings, loans, insurance, and so on. Open finance or decentralized finance means creating a global alternative to these financial services. You can step into the world of decentralized finance just by having a smartphone and a stable internet connection. It's as easy as that. The objective of this system is to draw almost 1.7 billion unbanked people into the global economic system so that they also contribute to the world economy.
Decentralized finance over traditional finance
First of all, traditional finance works in a restricted medium. It uses banks and intermediaries to perform a single transaction. That should give you an idea of how slow this system is. Some transactions can take days to execute. They are also quite costly. For example, you may need to pay a small amount as service charge if you want your bank to do an NEFT transaction on your behalf.
When it comes to decentralized finance, there's no mediator involved. There are no intermediaries to charge even a penny. They work via smart contracts. The transactions take place within a few seconds, and most importantly, they are free.
One of the reasons why decentralized finance has the upper hand over traditional economics is that it's borderless. That means anyone with a smartphone and internet can access these financial services, irrespective of their location. Can you imagine how much the poor will benefit from this system? Almost everyone has a smartphone these days. But there are millions of low-income families that still don't have bank accounts. This change in the financial system can help them get an account and store their valuables in any which way they want.
For example, you want to buy some security tokens using the crowd-owned exchange. You can do it from anywhere in the world by clicking a few buttons. Moreover, the tokenization of assets is the way forward and represents the heart of decentralized finance. It lets you convert your assets into its respective digital counterpart. Once its value gets recorded on the distributed ledger technology, you can trade your asset, invest in it, or even sell it.
Most importantly, decentralized finance is transparent. There are no hidden costs involved. It is all set to increase the competitiveness of the financial systems in the world.
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