Here at PumaPay, we pride ourselves on the decentralized nature of our solution, it’s what powers our payment platform and gives our business and personal users a completely comprehensive experience.
But if you’ve never heard of Decentralized Finance before, it can be a bit confusing as to how this fairly new system can provide so many benefits. Which is why we wanted to debunk some of the mystery and explain a few of the basics!
So, what is Decentralized Finance?
Decentralized Finance (or in more general terms, decentralization) basically refers to a financial system that exists without a central authority. You may have heard of Bitcoin, Ethereum or PMA, well, all of these cryptocurrencies use Decentralized Finance!
It just means that instead of using financial databases held and run by banks, cryptocurrencies are instead built on public blockchains which can be run by anyone.
This open network means that records of cryptocurrency transactions are held on thousands of computers across the world!
Traditional Banking vs. Decentralized Finance
So, now you know what decentralization is, you must still be wondering what are the benefits over traditional banking methods. The crucial point is that Decentralized Finance lacks a central authority. And without this middleman, you are no longer saddled with hefty transaction fees.
Also, with the increased privacy and security associated with blockchain systems, cryptopayments have quickly become the solution of choice for merchants and their customers.
A Solution for Everyone!
The peer-to-peer network of Decentralized Finances can allow anybody to use the platform, which has made it more popular recently.
People who were previously turned away by banks or payment processing companies are now able to take control of their finances using crypto.
That’s right! Inclusivity, total privacy, ultimate security, and ZERO transaction fees!
Why not try your hand at managing your finances with PumaPay’s solution, download your free crypto wallet today!