Earnity is led by fintech veterans and visionaries Dan Schatt and Domenic Carosa. The San Mateo, California-based platform is not only developing an incredibly intuitive platform that doubles as a marketplace but also several decentralized finance products and services.
A New Breed of Financial Protocols
Decentralized finance, also known as DeFi, is a new wave of financial applications built on Ethereum powered smart contracts. DeFi apps are open source, permissionless, and borderless, which means anyone can use them anywhere. This new breed of financial protocols and platforms has the potential to upend global banking as we know it.
DeFi has already had a significant impact on the crypto-assets markets. In less than two years, the DeFi ecosystem has grown to include over $1.5 billion in value locked up in applications such as decentralized exchanges, lending platforms, and stablecoins. This is a small fraction of the $244 trillion global banking industry, but it represents a significant shift in how financial services are being delivered.
Ripe for Disruption
The traditional banking system is centralized, which means a small group of institutions controls it. This centralization has several drawbacks:
- It makes the system vulnerable to corruption and abuse by those in power.
- It limits access to banking services to those who live in developed countries and have the necessary documentation and credit scores.
- It imposes high costs on users in fees and interest rates.
DeFi protocols are decentralized, which means no single entity controls them. This decentralization has several advantages:
- It makes the system more secure since there is not a single point of failure.
- It increases access to banking services for those who live in developing countries and don’t have the necessary documents or credit scores.
- It reduces costs for users in the form of lower fees and interest rates.
DeFi is still in its early days, but Dan Schatt and Domenic Carosa executives of Earnity see its potential to revolutionize global banking. The traditional banking system is ripe for disruption, and DeFi is the perfect technology. Look for DeFi to make significant headway in the coming years and be prepared for a whole new world of financial services.