Why do we need Decentralized systems?

One word: trust.

Disclosure: views expressed are purely personal and do not reflect any organisation’s views or thoughts the writer of this article may be affiliated or associated with. This is NOT financial advice and I’m not recommending anything. This article is only for educational purposes

As we know, banks and financial institutions charge fees for almost all the services provided. The services provided by financial institutions is no doubt important in creating a trust layer for people to transact and do business. But what if we can have a better, faster and cheaper way to do it?

When the modern baking system was created 500 years ago, the idea was revolutionary. The banks created during the Italian Renaissance were a technology disruption. Now blockchain is the new technology disruption challenging the old world.

If you send a wire transfer between banks in 2 different countries to support your parents, it’s normal to pay up to $30 for a small transfer. At the same time, remittance companies such as MoneyGram, Western Union and UAE Exchange frequently charge more than 10% fee to people that want to send some savings back home. Many times, the people that most need essential financial services are the ones that pay the highest fees.