THE GAP BETWEEN DEFI AND CEFI

in #hive-1679222 years ago

One thing I so much understand is that if you are not in a system it will be hard for you to understand how that system operates. Few days ago I went to a bank to make some transaction and fortunately for me I met an old friend of mine there in the bank, we greeted each other and from there we started discussing about a lot of things that are happening .

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After i finished making my transaction, I decided to wait for my friend because we seems to be the last person that they attend, while on our way going a friend to my came to join us and our discussion slowing unfold from the banking system to cryptocurrencys. The third person happens to be working in the bank, unfortunately he was not a fan of crypto, he is a real hater of crypto,perhaps because of his profession. He said he did see what is so special about crypto that made people to be wanting to invest it, he doesnt see any value in it , he also claimed that they held several meetings which majority disputes the importance of crypto

While the discussion was going on , I came to a conclusion that the banks actually see crypto as a threat to the banking industries and as a result they are doing everything to make sure that they distabilse the existence of cryptocurrencys, I see that the banking friend which is the third guy doesn't really know anything about the workings of cryptocurrencys.

I always find it very funny and absurd when people tries to compare banking technology with crypto technology. Well the handwriting is always clearly writting on the wall, of course CEFI is convinient to use, you can keep your money in the bank because of the feeling people are having concerning the safety or security of their money. This days it's hard for robbers to just break into banks and do away things,so they think security is guarantteed.but little do they know that they are wrong. They have even forgotten that the bank can be insolvent. Most of the time you will have to live your home to the bank just like I always do to carry out your transactions especially if it has to do with physical cash.

But with defi the idea of you living your home to carry out your transactions is something I don't think will ever come into existence, even when it comes to security defi gives better security if you do things well, the level of decentralisation transparency is very high when it comes to defi,this is one area that CEFI so much lacks. There have been several instances where banks went insolvent even recently,we saw how some banks file for bankruptcy few months ago. So would you still say that the bank is safe for your funds?

Defi or decentralisation give you the freedom and control over your fund and assets,which means you are in total control of what you have on your defi, no one dictates for you what to do and what not to do, but with bank you are under constant pressure of interference with your account. Yeah it's no doubt that crypto technology is still new but it is doing what CEFI cant do in it's many years of existence. Years to come the existence of banks and other CEFI might become a history.