DeFi offers lots of advantages to businesses and end users which the key benefits include:
1. Accessibility: Users, regardless of their social status, can conduct financial operations without third-party institutions while DeFi applications ensure their transaction security and transparency because of decentralization. The decentralized approach provides easy access to financial services for everyone. Moreover, DeFi platforms and protocols are available across the world and can be used for international financial transactions as they are distributed across blockchains.
2. Transparency: Users can inspect the network’s data as Information about all activities within the blockchain network is accessible for everyone. Also, DeFi applications enable cryptographic mechanisms that verify the authenticity of information before recording it. Such transparency can show that an organization works fairly and attracts more investors. Moreover, self-executing code in DApp smart contracts allows for a flexible and direct person-to-person trade with both transparency and minimal requirements for joining.
3. Efficiency: Users can automatically lend and borrow funds by using crypto assets as collateral. This automation may lead to accelerate financial transactions, reduce costs, and expand the availability of lending services.
4. Ownership: Users can maintain full control over their funds in their personal wallets and trading services owing to elimination of intermediaries in DeFI applications. It means that users decide where they spend their money and whenever they want and choose trading partners.
5. Composability: One other useful feature of DeFi applications and protocols is the ability to interact with one another in a permissionless way so decentralized solutions can be combined to build new forms of financial services.