Introduction
The continuous growth of blockchain technology stems from the high level of demand from businesses and organizations that utilize the features in running their operations. One principal industry adopting the use of blockchain technology is the financial systems. There have been improvements in payment methods, as well as the manner of conducting financial transactions. With such integration into the banking industry and financial market, this launched the introduction of decentralized finance (DeFi) platforms. DeFi platforms, which are developed on blockchain technology, form technological progress, which eradicates the mundane practices in traditional financial and conventional banking systems.
In the blockchain industry, experts and investors have a distinct definition of a decentralized finance platform. They often refer to it as an innovation that focuses on using decentralized networks to bring about a reasonable change in the conventional banking sector. Some of these changes include the ease of accessing financial instruments, transparency, security, multiple payment options, and much more. DeFi also uses its technology to eliminate the existence of an intermediary during every financial transaction, as it is common with traditional banks. Through the use of smart contracts on DeFi platforms, financial deals can start and conclude without the altercation of the initial agreements on the parties involved. This also helps remove the additional costs incurred by the parties due to the interference and involvement of a third party. More so, the transactional delay does not exist. Another salient utility of decentralized finance projects is the lessening of the wealth gap existing between the rich and the poor. These projects enable equal access to financial bonds and eliminate the segregation seen in centralized processes. Dating back to the introduction of blockchain technology and cryptocurrency, and their integration in diverse business operations, there have been several DeFi projects developed to improve financial processes and services.
Industry Challenges
Business innovators in the industry develop these projects to transform the centralized system of operating financial processes by delivering a decentralized system. While numerous projects have successfully achieved this objective, a good number have failed to remain sustainable due to liquidity, poor management, stiff competition, lack of investors, and others. Some of these projects experience adverse difficulties in launching their network and resolving the capitalist system in the sector. Throughout the entire crypto space and the DeFi industry, each of these projects often introduces its platforms with new features aimed at tackling existing challenges, building a common ground for businesses and the public to thrive, and thus, remain sustainable for a long period. Generally, the primary challenge for most DeFi projects is ensuring their platform are sustainable and accrue profits.
We may agree that through the decentralized nature of blockchain technology, which is the bedrock of DeFi projects, there is an unlimited openness of clients from different financial classes, who become eligible to engage in the benefits of the platforms. While this may be a step in the right direction, the industry still faces certain challenges that dampers the success of DeFi projects and causes a daunting limitation to the mode of offering DeFi services to customers. Some of these challenges include:
Most DeFi projects do not have a proper platform, which allows strong and credible governance backing that implements an authentic decentralized system. This results in inadequate contract executions and poor organizational structure.
The reward system of some projects is untenable and this often poses a bad influence on the investments and assets of users.
Poor documentation procedures and inefficient accountability existing in projects is also a challenge. Such platforms also leave investors vulnerable to spurious systems, whose aim is to extort the investors.
A New Dawn
With such lapses in the current projects in the blockchain industry, there is a dire need for new and innovative platforms to sprout up and evolve processes. Decentralized finance and its applications offer diverse methods to perform financial processes and operations, and with the strong wave of an increase in the adoption of the crypto market, new projects will emerge. There are currently numerous opportunities for DeFi projects, which can proffer lasting solutions to the current issues bedeviling the industry. However, there are likely to be high-level risks associated with these opportunities, as well as massive rewards. One of these new projects to drive the use of decentralized finance is Smarts Finance.
Experts and professionals with vast experience and knowledge in the blockchain industry and decentralized space strategically develop this platform to transform DeFi applications. The development team did not build Smarts Finance solely for proffering lasting and attainable solutions to the problems mentioned above. Rather, it will create a functional platform that can implement the solutions thereby addressing the challenges from the source. The solutions offered by Smarts Finance include:
Open and Transparent Governance system
Contrary to the current governing structure in most of the existing DeFi platforms, which does not permit unrestricted access to the decentralized finance applications to the members of the community, Smarts Finance offers an all-inclusive system. There will be no existence of segregation among community members and users will be eligible to access all services available on the system. More so, in times of policymaking and decisions that influence the community, all members can make input and participate in voting processes.
Sustainable and Profitable Rewards Mechanism
Projects often cannot run a reward system for the long run. While reward mechanisms remains a strategic way to expand customers’ base and offer incentives to investors and community members, most DeFi projects do not have a sustainable platform that proves profitable. Smarts Finance intends to launch a reward incentive, which will be effective for a long time and remain gainful for all users that engage in its campaigns and the platform.
Proper Documentation and Accountability
It is often difficult to make profits and remain a strong DeFi project without securing the trust of community members and investors. Smarts Finance recognizes the importance of protecting the interest of its investors and shielding them from likely shady platforms. Through a thorough documentation process and efficient accounting structure, the system can eliminate all forms of doubt and worry in the minds of potential investors.
Official Project Sources
🔘 Website: https://smarts.finance/
🔘 Telegram: https://t.me/smartsfinance
🔘 Whitepaper: https://smarts.finance/assets/documents/WhitePaper.pdf
🔘 Discord: https://discord.com/invite/rertF5a
🔘 Twitter: https://twitter.com/Smarts_finance
🔘 Medium:https://medium.com/@smartsfinance
🔘 YouTube: http://www.youtube.com/channel/UCp58Zt6o88nj9jH8tKtvzSw
AUTHOR'S DETAILS
Bitcointalk Username: Chidoskim
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