Fintech will get burned with Defi
We will see massive shift of users from Fintech companies to Defi
How FinTech is exposing how slow banking sectors can be improved, Whereas Layer 2 Scalability solution like polygon , xDai, optimism is bringing massive change on the Defi Sector.
Crypto will do to Fintech, what the Fintech did to Banking — MARK CUBAN
Defi allows anybody to be there own personal banker, it allows you to do anything in seconds.
FinTech simplified banking applications, so before banking takes a hit, fintech applications will take a hit first. As crypto alternatives start giving out better APY interest rates on there savings, or faster account opening.
Even as we speak earlier layer 2 solutions on ethereum that were built in 2016–17 are getting hit now by the new generation layer 2 applications built in 2020, anything that is slow & cumbersome will eventually be taking a hit.
Fintech in this case would be the obvious one to take a hit. Especially when these can be done in seconds rather than waiting hour, days or months , actions such as :
- Opening a bank account
- Getting a flash loan
- Staking and earning APY
- Getting your contract insured
- Claiming your insurance money
All of these can happen with a click of a button, no more filling out forms and waiting anymore than a second to see the results of your action.
The part that makes Blcokchain different from Banking Sector is, In a decentralized sector from developers, stakers, to validators, and everyone around the network get incentivised for playing there part on the blockchain.
The thing about technology and the crypto space is that it’s changing a 100 miles an hour every second of every day, there’s something new every second and every single person feels they are missing out.
This is the speed of change we have always needed.
