A Few Reasons Why You Should Consider Decentralized Finance (DeFi) Platforms

Lately, there has been a shift towards decentralized fiancé platforms as digital currencies continue to transform the finance landscape. Since day one, cryptocurrencies have sought to make money and payment easily accessible to anyone around the world. And now decentralized finance (DeFi) is taking a step further by making traditional financial products accessible to everyone. Imagine savings, insurance, loans, trading, betting, gambling etc. all available to you no matter where. All one needs is a smartphone and a stable internet connection.

According to a report released by Binance Research, Defi was critical to the growth of the Ethereum platform since 2019. Currently, decentralized exchanges consume the largest piece of the pie, with 90% of all DeFi users.

The report also showed increased interest in financial DeFi products other than exchange related products. Currently, the top 100 DeFi tokens have a market cap of over $1.7 billion according to, which is testament to their growing popularity.

In this piece, we are going to go over a few reasons why you should consider DeFi platforms either as a user or an entrepreneur who is looking to venture into the financial sector. And with platforms like 1inch, getting into the world of DeFi has become a cake walk.

What Benefits Are Decentralized Finance (DeFi) Platforms Bringing?

  • Truly decentralized systems remove any censorship, which means users are free to choose whatever financial instrument they want to use whenever they want it. We can say that genuinely decentralized platforms bring financial freedom to the users.
  • Then there is worldwide participation through open finance; DeFi offers each individual the same chance of accessing financial products. Additionally, DeFi can balance out markets between different nations, thus creating a fairer global economy.
  • Decentralized finance offers the user full control over their money; therefore, intermediaries like banks or other third parties are not necessary.
  • There is the transparency of how money or assets are moving from one point to another across all markets, which is crucial.
  • Due to the transparent nature of the systems, corruption or any other kind of misbehaving is eliminated when it comes to decentralized platforms.
  • Additionally, there is more transparency, less overhead and more importantly, fewer costs when you compare DeFi to traditional financial systems.

What Sectors Are Using DeFi So Far?

Prediction Markets

Prediction markets are created to benefit the researcher, the speculator and the trader who aim to bet on future events. The goal is to have market participants take advantage of the outcomes of events. A good example is AlphaPlay a transparent betting platform where users can bet on the movement of two crypto coins and win a prize within 5 minutes interval. The platform uses smart contracts to enforce game rules and dish out payments. The platform allows bets on BTC, ETH, TRX, and EOS, new users can try placing bets without registration using $1000 demo money.

Currently, the platform is holding a token sale for it Alpha Gambling Loyalty program which runs from April 26 to August 8, 2020, where token owners are receiving 6% of the platform’s turnover as bonuses, 4% is used to reward users for inviting friends on the platform, and 90% is available to be won as prices.


For most people, managing a digital wallet can be complicated. One can lose their funds from exchange hacks or through misplacement of private keys, not to mention sending crypto to the wrong address leads to an irreversible loss of the funds.

DeFi insurance is a way of giving crypto users a decentralized experience similar to what traditional companies offer in the sector. A good example is Etherisc which dishes out immediate payouts through a self-executing smart contract whenever there are unprecedented flight delays, weather calamities or attack from hackers.

Freelance Markets And Payments

Most people view freelancing as the future of work. But, as the number of freelancers grows, one major challenge they face is getting paid for their work. Add delayed payments and high fees charged by third-party service providers, and you see why smart contracts are needed to guarantee payment for work done at minimal fees. A good example is Ethlance, a platform that seeks to make life easy for freelancers through an autonomous platform that connects freelancers to employers at zero fees and free membership.

Digital Wallets And Asset Management

If the blockchain is the internet, then digital wallets are equivalent to browsers since they serve as gateways to the system. Interactions with the blockchain are made on a digital wallet but finding a balance between simplicity and security when developing virtual wallets is a challenge. Here, Defi tools are being used to improve simplicity when it comes to asset management on a digital wallet.

A good example is MetaMask which offers a platform that enables interactions with distributed networks using a simple browser. This allows Ethereum dapps to run on a browser without needing the full Ethereum node. Also, a user can open their wallet in just 30 seconds without having to share their personal details.

As we have seen above, decentralized finance offers many benefits however it’s still at its infancy and issues of low liquidity, and regulation clarity need to be addressed if DeFi is to feature more prominently within the financial sector.

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