DeFi

An uphill climb: Neobanks can democratize access to defi products

Published

6 months ago

16 July, 2024

An uphill climb: Neobanks can democratize access to defi products

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of the crypto.news editorial team.

DeFi promises a future without centralized control. It has ushered in a new world where you can borrow money without going through a bank, earn interest on your crypto holdings at higher rates than traditional savings accounts, or trade assets directly, peer-to-peer, without the need for intermediaries. One of the main goals of DeFi is to break down the barriers that have excluded large swathes of the world’s population from financial services.

Neobanks, on the other hand, are digital-only banks that operate online, without physical branches. Due to their user-centric approach, flexibility, and low fees, neobanks and crypto apps like Revolut, N26, Chime, and Brighty App have become very popular, making banking more accessible and convenient for millions of people.

And what about the intersection of these two sectors? Could neobanks leverage their technological infrastructure and intuitive UX to tackle the complexity of decentralized finance and build a more inclusive financial system? Let’s explore how neobanks can democratize decentralized finance products by acting as intermediaries between traditional finance (tradfi) and decentralized finance.

The rough terrain of Defi

Over the past few years, the sector has attracted a wide range of tech pioneers, with total value being locked in DeFi protocols. exceeding $195 billion by May 2024. Interestingly, traditional financial institutions have also jumped into decentralized finance, offering digital asset custody services and exploring collaborations.

One of the latest key trends in this field is the integration of artificial intelligence (AI) and machine learning. These technologies are already having a significant impact in several key areas of decentralized finance, such as security, chatbots, operational efficiency, risk management, and personal financial advice.

Yet navigating the uncharted territories of DeFi can feel like climbing Mount Everest in flip-flops: its complexity and technical barriers remain quite high for the average user. Despite recent advances, security also remains a major concern. Moreover, despite the development of cross-chain bridges and interoperable solutions, DeFi protocols often operate in silos, which hinders interactions; regulatory issues cannot be ignored either.

This is where neobanks, sleek and user-friendly fintech prodigies, have the potential to become the sherpas of the new financial revolution.

Neobanks: Connecting Decentralized Finance to the General Public

One of the biggest barriers to DeFi adoption is the inherent complexity of its protocols. Deciphering encrypted interfaces, managing unknown wallets, and fearing irreversible errors pose a significant barrier to entry, even for tech-savvy individuals. Neobanks, which focus on intuitive interfaces and excellent user experience, can be game changers in this space.

By seamlessly integrating defi features into existing neobanking platforms, users can access educational materials and explore different defi products, all in a familiar and trusted environment.

Security at the Heart of the Fight: From the Wild West to Fort Knox

Security concerns are another major hurdle in the adoption of DeFi cryptocurrencies. Horror stories of hacked wallets and lost funds haunt the crypto space. Neobanks, with their robust security infrastructure and focus on regulatory compliance, can provide users with the much-needed peace of mind.

Imagine a world where neobanks act as custodians of your DeFi assets, offering the same level of security you’d expect from your traditional bank. This includes secure storage of digital assets, advanced fraud prevention measures, and clear communication about the potential risks associated with DeFi. By prioritizing security, neobanks can foster trust and encourage broader participation in the DeFi ecosystem.

Breaking down silos, building trust

By acting as aggregators, gateways, and curators, neobanks have the potential to transform the fragmented DeFi landscape into a more unified and user-friendly ecosystem. First, they can leverage their user-friendly platforms to aggregate a variety of DeFi services. This way, users would have easy access to lending, borrowing, trading, and other DeFi features in a single app, simplifying their DeFi experience and eliminating the need to navigate a multitude of separate protocols.

Second, neobanks can serve as bridges between different DeFi protocols, enabling seamless interoperability, for example by initiating a loan using one protocol and seamlessly transferring those funds to another protocol for investment purposes.

Third, neobanks can leverage their expertise to curate a selection of high-quality DeFi products for their users. This selection process would involve a careful assessment of security, risk factors, and potential returns, providing users with a safe and convenient way to explore the world of DeFi.

Bridging the regulatory gap

One of the biggest challenges facing DeFi is the current regulatory landscape. Regulations vary widely across jurisdictions, creating uncertainty for both users and developers.

Neobanks, with their established relationships with regulators and experience in financial compliance, can leverage their expertise to create tools and services that help defi projects comply with current regulations. This could include: Know your customer (KYC) and fight against money laundering (AML) solutions specifically designed for the DeFi space.

Beyond that, they can use their voice to advocate for clear, sensible regulations that foster innovation in DeFi while protecting consumers, working with regulators to create a framework that encourages responsible development and adoption of DeFi.

A user-friendly gateway to democratized finance

Neobanks and DeFi represent two sides of the coin of financial innovation. While DeFi promises a democratized future, its complexity remains a barrier to entry. Neobanks, with their user-centric approach, have the potential to bridge this gap.

Today, I envision a future where neobanks transform from convenient banking apps into gateways to a secure, curated, and unified defi experience. This future drives financial inclusion, empowers individual users, and unlocks the true potential of decentralized finance. As defi continues to evolve, collaboration between neobanks and defi protocols can make conquering the financial landscape much easier.

Nikolai Denisenko

Nikolai Denisenko Nikolay is the co-founder and CTO of Brighty, a neo-digital banking app. Nikolay has over a decade of experience in applied mathematics, business process management, and application development. Before founding Brighty, he was a Senior Backend Engineer at Revolut, which developed Revolut Business. This division was considered the most profitable in the company.

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

Website: https://presale.rollblock.io/

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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