Understanding the role of Decentralized financing in the African society can viewed from various Concepts:
The purpose of decentralized finance: allows individuals to handle a number of financial applications – like investing, insurances, exchanging, borrowing, and lending in a more efficient and transparent way.
Why Decentralize Financing is important:
Global currency usage, instant borrowing and lending, acquisition of stable currency etc.How does Decentralized finance work:
Usage of smart contracts to provide services that don't need intermediaries.
BENEFITS OF DECENTRALIZE ADOPTION IN COMMUNITY GROWTH.
DeFi is an alternative attempt to decentralize core traditional financial use cases like trading, lending, investment, wealth management, payment and insurance on the block-chain. With adoption of DeFi, proper integration and management, the community would enjoys the following;
Stress free transaction,
System Transparency.
Easy Lending and Borrowing Applications.
Increase Savings returns.
Tokenization.
Scalability.
More.
Despite the many benefits, from decentralized financing, they are also risk attach to the system, which involves user not able to guard the value of their assets from market gyrations. frequently value fluctuation, no central management system in cases of theft and more.
Countries like China · Russia · Vietnam · Bolivia, Columbia, and Ecuador has placed their reasons for Crypto rejection to lack of Central management system, but a few countries like the United States · Canada · Australia · The European Union · El Salvador has adopted crypto trading.
African countries like South Africa and Nigeria has crypto regulations, but despite the regulations decentralized finance/crypto acceptance has continuously been on the raise.
Indeed Defi is a project that has given people Financial freedom from the traditional Financial centralized system .this is one of the reason why it is getting attacked by regulators.
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