Decentralized Financial Intermediation are made possible with the recent advances in the block chain technology. Centralization, are mostly centralized systems of financial intermediation. That is, a few key parties performing most of intermediation tasks for a vast network of users. By contrast Decentralized financial system like bitcoin has a network of users provide most of the intermediation tasks like transaction verification. The idea of decentralized mediation is not new and they have been around for decades but is new in the financial setting. The new setting is usually done in the block chain technology and some level of cryptography.
What is the goal of crypto finance?
- It aims to disintermediate the back end of our financial system.
- They aim to enhance some aspects in traditional bank driven centralized financial transaction system with a network driven, decentralized system on the block chain.
- It aims to see where block chain delivers the most efficient gains and reduce cost.