CEX.IO company blog | Can DeFi projects replace traditional finance?

Decentralized finance (DeFi) projects continue to gain popularity. According to CEX.IO, for 2020 theirthe total capitalization increased 61 times and reached $92 billion. By the end of 2021, it may increase to $200 billion.

Dmitry Volkov, technical director of the international crypto exchange CEX.IO, commented for Izvestia on what advantages decentralized finance has and why its popularity is growing.

Key Benefits of Decentralized Finance— anonymity, work without strong regulation, distribution of all system profits between users and speed of operations. Among the risks is the lack of an insurance system. And yet, DeFi can become an alternative to the traditional financial sector.

Such services are more reliable because they alwaysthere will be operators ready to make a deal with the consumer. And the profit is distributed among all users who invest their funds to make transactions on the platform, which can be considered a significant plus. All money in DeFi belongs to consumers, and no one can restrict their access to it, since only the clients themselves have the keys to the wallets. And due to the lack of a central structure, such a system cannot be hacked, while many hacker attacks are carried out on banks.

Read the full article at the link.