How Will EIFI Finance shake up your Future industry?
Decentralized finance is a fundamental shift in how financial transactions happen.
EIFI Finance Decentralized finance (DeFi) could be one of the most impactful developments in the emerging digital economy.
It has the potential to transform financial intermediation.
Organizations should investigate the opportunities and business risks DeFi poses.
In recent years, the digital assets and cryptocurrency industry has evolved rapidly. Institutions have begun facilitating the purchase and sale of cryptocurrencies, offering custody services and are now looking for ways to get involved in decentralized finance (DeFi). The existing growth in DeFi is driven by digital native firms, venture capitalists and individuals. The entry of traditional institutions into DeFi will be a significant milestone in the industry’s maturation and progress towards widespread adoption. It will have impacts on the broader financial system and existing forms of financial intermediation.
EIFI Finance is intended to transform the current centralized global financial infrastructure by introducing an internet-based decentralized model that relies on open-source protocols instead of traditional financial intermediaries.
EIFI Finance presents traditional financial institutions with a series of opportunities for growth that can enhance existing operations and services — but also threatens today’s financial services and their core business model.
How institutions respond to this new form of decentralized financial intermediation will have lasting impacts on their role in the emerging digital economy.
EIFI Finance is the decentralized finance ecosystem for a new form of financial intermediation that reduces the reliance on central intermediaries. EIFI Finance applications or protocols that are built to facilitate this new form of intermediation are referred to as decentralized applications (DApps) and are built on public blockchain infrastructure. EIFI Finance platforms are typically open source, interoperable, internet-based protocol stacks that leverage smart contracts built on public blockchains, such as Binance Smart Chain, to facilitate financial services.
Smart contracts that operate on public blockchains, are a critical component of EIFI Finance. Smart contracts are code stored on a blockchain platform that autonomously perform a set of predetermined actions, generally pursuant to terms of an agreement, without the need for an intermediary. Once deployed these smart contracts are immutable and the source code and transactions facilitated by the smart contract are recorded on the blockchain for anyone to view.
For example, a smart contract could be programmed to exchange a certain amount of currency for another, between two counterparties. If the smart contract code verifies that the required currency from each counterparty has been provided, it will execute the transaction, thus eliminating the need for third parties to facilitate the transaction. A group of smart contracts can interact to facilitate several different functions and often an application will rely on multiple smart contracts that are linked together.
Most DeFi services mimic existing services found in today’s tiered financial system, but this was not always possible. Historically cryptocurrencies were too volatile to facilitate financial transactions, other than for speculative trading. The answer to this problem came in the form of “stable coins” — assets that utilize either complex algorithms (as with DAI) or legal relationships with a trusted centralized entity (as with USDC) to peg their market value to an external reference (such as a fiat currency). Stable coins, given their ability to replicate the features of traditional money and compatibility with DeFi applications, can act as a foundational component for facilitating more sophisticated products, similar to the way in which the existing financial system operates.
Why EIFI Finance is important?
EIFI Finance apply the decentralized peer-to-peer model on a global basis to the various forms of financial transactions that require an intermediary today (for example, collateralized lending, interest-bearing deposits or investment portfolio management), the potential impacts to the existing global financial system and its intermediaries become significant.
EIFI Finance empowers individuals to retain more control over their assets compared to the traditional financial system and allows individuals the financial freedom to choose how to invest their assets without the need to rely on an intermediary. This does not mean that individuals will no longer need financial guidance or that traditional financial institutions will become obsolete, but the way individuals and institutions interact within the financial system and make financial decisions could look very different in the future.
EIFI Finance will also impact business-to-business interactions. As institutions begin to plug into the blockchain ecosystem, and tokenization of financial assets such as derivatives and securities continues to mature, there is potential for smart contract-based decentralized applications to begin acting as intermediaries between institutions. An example of this would be if, instead of clearing trades through the Depository Trust & Clearing Corporation (DTCC), institutions were able to instantaneously trade tokenized securities in an open marketplace facilitated by smart contracts on the internet.
Another area of disruption will be the tokenization of real-world assets on public blockchains. This will unlock liquidity for firms by allowing historically illiquid assets, such as commercial real estate, to be represented as tradable fractionalized tokens on a public blockchain. These tokens can then be posted as collateral or included in investment pools on DeFi protocols. This will also apply to existing supply chains, as it will allow for a more open smart contract-driven marketplace, where entities transact using privacy-preserving technology on a public blockchain and prices are dictated by market conditions.
What are the opportunities?
EIFI Finance is still in the early stages of innovation will have a prominent role to play in developing the DEFI ecosystem. There are financial opportunities, including new services and products, as well as operational efficiencies that can be gained by leveraging the existing DeFi ecosystem and infrastructure. As this new financial ecosystem continues to evolve it will create significant growth opportunities for institutions that are able to adapt and embrace these changes.
Examples of ways in which a EIFI Finance platform could change the traditional process and parties involved include:
Exchanging digital assets, for example converting Bitcoin for another digital asset in an open internet marketplace, taking all the typical processes of banks and payment service providers, translating them into contract language and automating them
Lending, borrowing and saving: instead of banks using savings to invest and lend, smart contracts manage deposits, pay interest and lend based on predefined terms outlined by the market
Derivatives that typically involve a contract with an organization or individual and a clearing house or intermediary to settle, can be managed by smart contracts in an open market
Tokenizing physical assets or financial assets in the supply chain or financial transactions and allowing for more accurate, efficient and transparent marketplaces
EIFI Finance will continue to increase as the number of participants and amount of capital locked in these protocols continues to rise. Institutions will take different approaches to how and to what extent they interact with DeFi applications based on their risk appetite and existing capabilities, but no financial institutions can choose to fully ignore the emerging digital economy.
EIFI Finance Social Media Details-
Company Name: EIFI Finance
Address: 51 Epirus Road, London, England, SW6 7UR
Contact Person: Emilie Siobhan Geoghegan Francois
Email: [email protected]
Phone: +44–658881001
✅Official Website👉https://www.eifi.com/
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