Decentralized Finance: Business Opportunities and Trends I
By Anil Kumar Agarwal
October 18, 2024
Summary- The benefits of DT (Distributed Technology):
- SPEED: International payments can be completed in minutes, reducing the traditional 3-5 day processing time.
- COST-EFFECTIVENESS: The cost of international transactions is significantly reduced, making it more accessible to businesses and individuals.
- SECURITY: An additional layer of security compared to traditional payment platforms.
- Challenges and solutions:
- Legal and regulatory challenges: Integrating DT with existing legal infrastructure will be a significant challenge.
- Existing infrastructure: Banks have invested heavily in their current systems, making it difficult to switch to DT without an interface that can connect both technologies.
- Use cases for DT:
- Global Payments: DT can reduce the cost and time associated with international transactions.
- UPI (Unified Payment Interface): DT can improve UPI's existing benefits, such as lower costs and faster processing times.
- Rural level applications: DT can enable financial inclusion by reaching rural areas where traditional banking infrastructure is limited.
- Gartner's prediction: By 2030, blockchain could generate $3.1 trillion in new business value.
- Real-world implementations: Startups and companies are already implementing DT solutions for supply chain finance, trade finance, and digital KYC (Know Your Customer).
- Conclusion: The speaker highlighted the potential of DT to revolutionize various industries, including banking and finance. While there are challenges to be addressed, the benefits of speed, cost-effectiveness, and security make DT an attractive solution. As technology continues to evolve, we can expect to see more innovative applications of DT in the future.
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