Can These Blockchain Solutions Replace the Traditional Banking System?

In the past few months, blockchain and cryptocurrency have emerged as mainstream innovations. This has resulted in increased adoption even among financial institutions and corporations that once considered nothing but a sham. This increased adoption and popularity have led many to wonder if it is ever possible that blockchain will replace the traditional banking system.

While it is impossible to give a definite answer to this, there are clear signs that it might happen in the future. Already, some countries are looking to integrate cryptocurrency into their financial system officially. Countries such as El Salvador and Panama are top of the list in this area. Beyond that, many central banks are already working on digital currencies. This shows that even those at the apex of the traditional financial system see the potential in the blockchain.

With the growth of DeFi, the potential of blockchain as a replacement for traditional banking has increased. DeFi platforms can also provide almost all the financial services and solutions offered by banks. It even gets better with DeFi because there is no need for a third-party intermediary. DeFi makes the services accessible from anywhere as long as you have internet services and a wallet. Here are some of the blockchain protocols providing services similar to what banks offer.

Polkadex

One of the core services of the traditional finance system is brokerage. There are thousands of brokerage firms worldwide helping people buy stocks, shares, etc., but what if you can do it by yourself? This is what Polkadex is all about. It is a decentralized peer-to-peer cryptocurrency exchange built on Substrate and uses the order book style of centralized exchange while staying fully decentralized.

Any crypto trader can use it for trading as it supports high liquidity trading at lightning speed. It supports fiat currencies and access to multiple liquidity sources. You can use algorithmic trading on the platform or use its IDO pallet to create ERC-20 like tokens for your projects.

Polkadex is a platform that lets you trade, control your assets and manage your portfolio like a brokerage.

YeFi.one

When most people open bank accounts, their primary reason is so they can save money in it and use it to receive money. While traditional banks offer interest on savings, the interest rates are rarely encouraging enough to be the sole reason for putting money inside a bank account. Here comes a DeFi platform that lets you save and earn incredible returns on your savings, YeFi.one

It is a non-custodial open-source platform that offers decentralized finance and decentralized data storage services. It intends to provide borrowing and lending services, NFTs, and DEX capabilities as well. YeFi is connected to Binance Smart Chain, and you can access it with all wallets compatible with BSC. It has its native YEFI token listed on decentralized exchanges like WBF exchange, Pancakeswap, and Bittrex.

XinFin

This is a hybrid blockchain designed for international trade and finance. It combines private and public blockchain paradigms to create a fully permissioned environment leveraging on both.

It is a delegated proof of stake blockchain with its native XDC token. Users can stake to generate yields, and anyone can become a Master Node by staking up to 10 million XDC tokens. It has smart contract capabilities with very low fees and instant finality.

The features of the XDC Network make it an ideal network for building decentralized applications. It has its own apps, Blockdegree and TradeFinex. You can use TradeFinex to raise liquidity funding for your projects. XinFin offers multiple products that are currently being provided in the traditional financial system. But it does it more effectively, which makes it a better option even for institutional investors.

Qan

This hybrid open-source blockchain is quantum-resistant, offering you the chance to keep your data safe. Its cryptography protects data transactions from quantum computer attacks. Moreover, you get to decide which data transactions you want to keep on the private blockchain and the ones you want on the Qan Platform public chain.

In an age of cyber attacks, the traditional financial systems and even several popular blockchains are prone to attacks. But Qan has been developed to be fully resistant to such attacks.

Minima

Do you need to transfer information or data and need a platform to do so? Then, this is the blockchain for you. It is an ultra-lean blockchain in which every user can operate as a validating node. As a result, it is scalable and completely decentralized while also remaining secure and resilient.

Minima is able to cut out the noise and achieves what it calls “total decentralization” through the way it cuts out the need for the overall dependence on miners —which many crypto projects depend on in the system. And since each user is able to run a full node on his mobile device, the blockchain is able to achieve its decentralization dream while also ensuring the security and scalability of the blockchain.

In essence, the users are king as everything depends on the entire user base of the digital blockchain.

Premia

This is a DeFi protocol for trading new and innovative financial products. If you need to trade options, call for several tokens on Binance Smart Chain and Ethereum. This platform provides innovative variants of traditional financial products. Users can mint or stake on the platform. It uses the ERC1155 token and offers p2p solutions, composability, asset selection, secondary market support, and incentives model.

Kira

Based in Singapore, Kira Network is a first of its kind decentralized fintech network through which users can access any digital asset within the crypto ecosystem. Through it, users can stake a digital asset simultaneously on several chains and earn rewards from multiple sources while having full custody of their assets.

According to the founder and CEO, Milana Valmont, the network gives users the opportunity to use 100% of their working capital. Instead of the usual scenario where assets that are staked gets locked up, Kira let’s you use the assets to trade or participate in other DeFi projects. The network works based on a Multi-bonded proof of stake mechanism. This makes it possible to stake different kinds of digital assets, non fungible tokens, and even real world assets.

Popcorn

Popcorn’s DeFi platform is unlike many others. While it offers similar value propositions with other DeFi protocols, it is also a non profit organization. It focuses on attracting two kinds of investors, those who care about carbon neutral transactions and those interested in high returns. The earnings generated are then used to provide grants for societal causes focusing on issues such as environment, education, open-source, etc.

Conclusion

While the Traditional financial system remains very much relevant in today's world, it is crystal clear it cannot cater for all. 1.7 billion people are currently unbanked, and beyond these people, blockchain is gaining traction among institutions, showing it is not just individuals who see the potential beyond these people.

The growth of the DeFi space means that all services provided by the traditional financial system can also be replicated on the blockchain and improved upon. This means that with time, blockchain will eventually replace the traditional financial system