Source: Collected

Blockchain & Defi: Experience Secure Transactions in Financial Services Industry

Defi- the term might be new for many. It stands for Decentralized Finance. In today’s era, cryptocurrency has taken the world by storm. With the growing popularity of cryptocurrency and blockchain, it is necessary to keep the things arranged and this is where Defi comes into play.

Being popular as a decentralized network, Defi is offering a highly advanced and secure financial system. It is an independent system that fully manages things on its own. With the use of Defi, the customers can hassle-free make quick transactions, transfers, and investments. No matter, it’s about digital assets or cryptocurrency, Defi makes it easier to handle the transfers.

The best thing about this system is that it doesn’t dig any hole in customers’ pockets in the form of deductions. In the case of lending and money cryptocurrency, Defi is the right thing to go for. The automated smart contracts created by Defi helps in terms and conditions for loans and transfers. There are a number of layers that make Defi works. The list includes The Layer of Settlement, The Layer of Protocol, and The Layer of Application.   

When it comes to using Defi, the native cryptocurrency to be used with it is Ethereum. To get started with Defi and begin with an exchange of dollars, what all needed is a dapp. It enables the users to make passive income by simply getting signed in. The whole system revolves around lending and money investment.

As it involves complete transparency due to the no involvement of middlemen, this can prove to be lucrative. Well, the benefits of using Defi can be witnessed and the Defi apps are gaining huge popularity around the globe.

Blockchain Technology in the Defi marketplace has become the talk of the town. There’s a lot to be known about the role of Blockchain in Defi. To dive deeper into the details, a recent interview of Sankar Krishan, EVP and Industry Head at Banking and Capital Markets at Capgemini, was conducted.

A list of questions was asked aiming to know what’s new in blockchain technology about the finance industry.  

  • To what extent blockchain is best suited for digital payments? How mainstream providers are reacting to it?
  • What are the blockchain vulnerabilities and is it safe to take advantage of blockchain seeing the growing Poly Network Hacks?
  • Is there any surety of customer assets being protected with Blockchain?
  • Undoubtedly, blockchain technology is becoming more mainstream, so what things need to be done to make it more secure?
  • What other technologies can be used as blockchain replacements?
  • What blockchain technology has in stock for the users to offer in 2022?

In answers to the questions, Sankar Krishan put light on every aspect and brings forward the details. According to him, in today’s fast-growing era, when it comes to choosing any trusted network for digital payments then blockchain has given users a number of reasons to opt for it. High security is the key element that makes it the best over others. Transparency and Traceability are the additional benefits. Moreover, it gives an end to the paperwork. In addition, it has become the preference of mainstream providers as well and they are actively involved in harnessing the power of cryptocurrency platforms.

As far as Poly Network Hack is concerned, the blockchain vulnerabilities were uncovered and which got fixed. Further, he added that in the future it’s hoping that crypto will offer higher protection.

While putting light on the safety of the customer assets, Sankar Krishan states that he doesn’t have any knowledge about the guarantees for the customer assets protection, but as far as the flat payment’s on a bank’s blockchain network is concerned then these are highly protected using the same laws. Best-known for its security, blockchain technology is widely trusted for making transactions.

In the coming times, there is a wide scope of growth in Blockchain and Defi. With DLT, there is going to be a drastic increase in payments, clearing, and settlement, trade finance, and lending. So, this way it won’t be wrong to say that Defi is here to stay and is likely to transform user’s life with unmatched financial services.

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