Finance is an important part that we cannot do without. As technology advances from the past to the present, money follows suit. The traditional financial system refers to local banks, but crypto introduces us to decentralized systems.
This article appears to educate non-users of the decentralized system and investigate the present influence of the traditional financial system on human stress levels. As well as benefits of decentralized systems.
it shall be considered under the following points:
Major drawbacks of the existing financial system
Reasons We Need a Change
Benefits of a Decentralized Financial System
Major Drawbacks of Traditional Financial Systems.
It is quite annoying to see how your account concerns are addressed. Each account opened on the traditional financial database requires the owner to come in person. Given the large number of people in line for the same objective, this is a red a flag.
Individuals who work at local banks might be really harsh at times. A man complained about the sudden disappearance of money from his bank. I expected the bank employees to verify the man's claims, but the opposite was true. They had to force him to join a long queue despite having seen him earlier for the identical situation.
Finally, the bank suggested clearly that they cannot do anything about the situation since they are unable to track where the money has gone. This was said by one of the bankers. I observed as the old man wept hard. This alone can lead someone to feel enraged and unhappy with the traditional bank management because you can't tell me that someone who hasn't ever shared his ATM card information with anybody before can suddenly wakes up one morning and discover that all of the money in his bank account has disappeared without the bankers conniving for that.
People are reluctant to deposit funds into their own local accounts due to a lack of trust on the current traditional finance system. It appears that certain bank employees are also participating in similar fraudulent activities. It is relatively easy for a bank employee to filter an inactive account with money in it and wipe the cash out.
I can also relate that I experienced the same scenario, but I won't identify the bank. After multiple failed efforts to register an account with the bank, the bank worker who was supposed to handle my issue informed me that my account could not be created. I was astonished to learn that I was unable to establish an account with a local bank. I grew bored of coming back to the financial institution and decided to end the procedure. However, I continue to receive notifications on my mail for the account that another person is using.
I went back to the same bank to file a complaint that I attempted to create an account however the staff dealing with it informed me that registration was unsuccessful after several attempts, yet after I decided to give up on the account, I continued to receive credit alerts with an individual email attached to the account by another user. They ordered me to wait in an unending queue and gave me a number.
They couldn't contact me to address my issue for two days i went since they can't handle all complaints in one day. These have been discouraging actions by local traditional banks that require quick adjustment or the adoption of decentralized finance. Individuals will go through hell only to obtain access to their own money.
Even the existing traditional financial structure in America does not even allow for such actions as those seen in Nigeria. They did have a setback, but not in the same way that Nigeria did. I have to be honest at this point because it is incredibly exhausting and disheartening. With the rates of transportation and everything soaring, having access to your own finances becomes difficult. From one unnecessary verification to another. This is a significant setback to the current orthodox banking system.
If you need to access your funds, you'll need to wake up early and go to the bank in order to obtain a number and a place to stand in line. Once you have the number, you will notice a large number of people in the waiting hall, as banks only handle financial complaints from the previous day or week because nearly everyone is affected.
Why We Need a Change
At this moment, change is really important since folks cannot be exposed to such strenuous conditions only to get their own money (not giveaway money).
Second, the population is increasing on a daily basis; with safety in mind, it is not healthy to be in a large crowd all the time. Covid 19 has taught us a very important lesson. You cannot withdraw money from an ATM if your card has expired, even if it is still in your account. As a result, reform is really necessary.
Third, the increased cost of living requires more money for everyday financial transactions. With the local bank imposing a withdrawal limit for the day, it is clear that fulfilling your financial obligations would be difficult; you will be forced to wait for at least a week to withdraw a million naira in order to execute a plan.
Benefits of the Decentralized System
The actual contrast between the two is that one provides a stronger foundation for financial management than the other.
The following are the advantages of the decentralized system:
Financial Transactions are done without Barriers.
Limitations on financial transactions are easily met. Additionally, there are no withdrawal limits as long as you hold the funds.
Financial liberty is the most significant feature of a decentralized system; you may access your cash from anywhere and at any time without being informed there is no network, as in the case with traditional banks. I cannot envision a bank informing its consumers that it does not have a network.
Financial intelligence: you may prepare your finances for retirement and you can also invest in more profitable choices with higher APR.
Financial security: If it was feasible to learn the hive password, I would have questioned the legitimacy of the decentralized banking system. But this is difficult to carry out. When fund owners log into the decentralized system, they may be certain that their money is safe.
No one can access your cash unless they know your keys, which cannot be hacked. In comparison to the traditional method, it is easy to filter from the database accounts with at least a million naira, scam the owner, and stay alert when he or she finally arrive to make complaints. its only when the owner threatens to expose such practice online then the bank will attend to the issue speedily (no longer the case now you can threaten an exposure and the issue wont be addressed despite). but once they discover you are ignorant of it, they keep you in a long line till you get exhausted.
Whether you like it or not, the decentralized financial system is here to stay and will be extensively accepted. It is critical to become acquainted with the concept right away in order to avoid being taken off guard.
Thank you for reading my blog. I wish you the best of luck as we all anticipate adoption of the new financial technology.
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