Decentralized and open finance is the new frontier, and for some of us are all in on this new technology, but for some that are just entering into the crypto world by investing in Bitcoin or Ethereum, the question still is: Why should we care? The fact of the matter is that defi is a new market, and we don’t know how or when it will be stable, its sometimes clunky, slow, and many people don’t understand it, but in my opinion, this is why all of us should care about it decentralize and open finance.

Traditional banks get rich with your money.

We all know that the only organization getting richer when you put money in an account is the bank itself. You can get up to 10ear or 20% interest on some defi platforms compared to the highest that we found on traditional banks is 1.25 to 2% yearly. Even if you look at your investment account, the service fees make you less wealthy as they go as high as 20%. Defi is here to change all of that in order to put more money in your pocket and solve things like fees on savings, investments and other financial products and not make other people richer other than yourself.

Your data matters.

Not only do banks use your money to earn money for themselves, but did you know that some banks and credit scoring firms sell your data to third parties? If you do, then this is another reason why decentralize finance is probably our best bet. Tools like Metamask and Trustwallet make many financial transactions anonymous and secured (most of the time); this can prevent you from being targeted for things such as identity theft. Although this is not or will ever be a perfect system, it’s way better than what we have today. This also will free us of things such as credit score firms like Transunion and Equifax from controlling our credit.

It gives everybody access.

Believe it or not, many people still don’t have access to banking or financial services (about 1.7 billion ) across the world. This could be for many reasons depending on the country you are but it can be super easy or super difficult to have access to things like loans and checking accounts. This makes it difficult to purchase goods and services outside your local area. The domino effect of this is critical. With defi, anybody could have access from anywhere as long as they have a stable internet connection and a mobile device. Things such as virtual credit unions in rural communities via wallets and protocols can be implemented to help people such as farmers in remote areas of the world.

The possibilities on decentralized and open finance are endless for now, but we need to be realistic when regulation comes, and it will come. This could slow down the innovation process. This won’t be easy since innovation is being done worldwide, and this would be playing a game of Wack-a-Mole. But, we all need to pay attention for now since this could change our lives just as social media and mobile phones did. And that’s more reason to care.