facebookLet's discuss, Is DeFi (Decentralised Finance) eating up Old Finance? - Seedly

Kenneth Lou

Co-founder at Seedly

01 Jul 2021

Cryptocurrency

Let's discuss, Is DeFi (Decentralised Finance) eating up Old Finance?

Our financial system is still based on ancient infrastructure. Wire Transfers haven’t gotten any faster or cheaper since the days of the telegraph in 1871! 👀

And FinTech? All FinTech did was give the existing analog system a UX facelift.

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Kenneth Lou

01 Jul 2021

Co-founder at Seedly

This 2011 article written by Marc Andreessen described how software native companies were eating incumbents and revolutionizing industries.

Amazon replacing consumer sales, Spotify taking on music, LinkedIn for recruiting—all poised to replace incumbents who didn’t build internet-native businesses.

Why? Software native companies were faster, cheaper, and a better for users. To Marc, it was only a matter of time before every industry was eaten by software.

But this hasn’t held true for finance.

Our financial system is still based on ancient infrastructure. Jim Bianco pointed this out on the podcast…Wire Transfers haven’t gotten any faster or cheaper since the days of the telegraph in 1871!

Case Study 1: PayPal vs Ethereum as money transfer networks.

Case Study 2: LendingClub vs MakerDAO as money lending networks

MakerDAO has been profitable after 6 years of operation while LendingClub is still booking losses after 15 years.

DeFi enables software economics for financial services.

Faster. Cheaper. Better. Finance.​​​

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