What potential outcomes and difficulties could arise from merging traditional and decentralized finance using public blockchain technology as the underlying infrastructure?
Here are some of the possible implications or outcome when traditional finance and decentralised finance are merged together.
1. Financial Inclusion: It can provide access to financial services for the unbanked and underbanked.
2. Efficiency and Transparency: Blockchain enables faster transactions and reduces fraud through transparent records.
3. Regulatory Challenges: Balancing decentralized finance with existing regulations requires collaboration between stakeholders and regulators.
4. Scalability and Performance: Addressing limitations in public blockchains is necessary to handle increased transaction volume.
5. Security and Privacy: Robust security measures are needed to protect funds and data while finding a balance between transparency and privacy.
6. Interoperability and Standardization: Common standards are required for seamless integration across different platforms and systems.
7. Education and Adoption: Educating users, institutions, and regulators is crucial for successful implementation.
The above mentioned are some of the possible outcomes I could think of but for this to be achieved, I believe that institutional grade products must be created and by institutional- grade, I mean products that are built with security and transparency as it's major principle and not limited to being regulatory compliant. Are there any projects currently championing this cause?
