Earlier getting loans for the people are not that much easy that is nowadays and it is easy because of the decentralization of the finance industry. The decision of decentralization of the Finance industry is very beneficial for the people.
Now, people can take loans on credit basis easily through DeFi. But as the decentralization of Finance industry is done recently there are many chances of being getting trapped in frauds as the lender has to know that not all the platforms and services of the same are decentralized. Hence, before opting for any decentralized finance platform user has to check properly from where to availing the services and taking credit for the same.
Nexo co-founder Antoni Trenchev told:
“As long as you have crypto assets, you can immediately borrow cash that is delivered straight to your local bank account.”
What exactly the DeFi is for?
DeFi is basically a term used for the block chains and the Bitcoins or cryptocurrencies which are being provided to the customers. A very well-known company namely markerDaAO lendsstable coins DAI to the users who want to take the loans after depositing the Ether. And even DeFi.review.website is a website which is launched recently and serving their customers the decentralized services of the finance platform at a very good scale where the customer has to give ethers in order to take the loan and the platform is providing EOS blockchain platform to the users for taking cryptocurrency for bandwidth.
Both markerDaAO and DeFi.review.website are serving their customer best and letting them get their services with ease and without much hustle.
“DeFi brings magnitudes greater accountability and transparency to investors making for a healthier financial system. These products will broaden access to sound financial investments no matter what geography you reside in.”
Beneficial effects of decentralization of the finance industry (DeFi):
- These decentralized industries are letting people get Crypto coins or stable coins in exchange for ether for getting interest and to start their online store.
- There are other platforms like BlockFi, Landoit, NUO, ETHLend and many more which are running successfully over the internet and providing credits to their customers and taking care of their ethers.
- Not only good platform is being provided to the customer after the decentralization of the finance industry but also they are safe and Secure to get the credits and only a little investigation is needed on the side of the customer before purchasing the credits and giving the others.
- An easy platform where you have no need to go out of the house to lend the money but you can get it after a little research over the internet. Hence, you can get the credits very easily after following a few steps.
- Even you can get all the information for lending the credits and owning your own storeson Google very easily.
CEO and co-founder of the Swiss-based AAVE wrote:
“First and foremost, ensure that the service provider does not hold your assets. This means that there must be a smart contract that holds the funds and secondly ensures that the transactions are conducted via smart contract and not through a third party signing. You should choose DeFi projects based on transparency and track record.”
But as it is true that as every industry gets some challenges when working, hence it is true in the case of DeFi that there are chances of some tribulations which the industry has to face in the future.
Following are some tribulation which the industry may get:
- As many of the platforms are not tested yet hence the user has to be more careful while choosing the one for them as they could get trapped in the fraud.
- The second tribulation is that they are providing a very limited number of credits to the customers which can be a big problem in the future.
- Also, the customer has to be aware of which platform is less decentralized and which is more decentralized on the basis of that they have to choose as their money is at risk on the platform which is less decentralized.
Hence, it is also right that when there are tribulations there are solutions for them also and hence the industry is trying to find out the solutions for these problems. getting loans