Traditional Banking vs Web3: MeanFi
Everyone knows about the traditional banking. But today I would like to focus on Web3. I hope this information will be useful to beginners, as well as already experienced Web3 users.
Web3 is the age where users can create new virtual worlds with the help of the metaverse. Web3 features and functionality are powered by artificial intelligence, machine learning, virtual and augmented reality, and smart contracts.
The main tenet of Web3 is that users retain control over data and create more directly, rather than through intermediaries.
Developments and protocols are available to any user. Limits and restrictions for innovation disappear. New applications and protocols are revolutionizing traditional business models at an unprecedented pace.
And this is not limited to the opportunity to visit a virtual bank, get acquainted with virtual products and services. Where there is an economy, there will be financial transactions - this universe requires owners to keep records of property rights securely and maintain their integrity.
The traditional financial services industry is notoriously bogged down in legacy technology issues - for example, different IT systems have a hard time communicating with each other.
With the help of Web3 developments such as smart contracts, any processes and transactions can be turned into a few lines of code, and these repetitive building blocks can be embedded in a range of applications, offering the ability to create highly customized products and services.
In times of global change, companies are faced with changing internal processes: finding new ways to deliver goods and buy raw materials, payment options. Each step helps retain existing customers and often find new audiences.
The shutdown of financial services corporations has forced freelancers, entrepreneurs, and large business owners to think about using cryptocurrency. Today we are going to understand the difference between classic banking services and digital assets.
Next I will present a few points that I hope will be of interest to you:
Anonymity
When you pay by card or transfer, you can see who makes the transaction - that's how the traditional banking system works. But many people would prefer to get rid of it - because of shyness, desire to keep personal information secret or other reasons.
While traditional banks don't just give out personal information, it is cryptocurrency transactions that can provide complete anonymity through established smart contracting mechanisms, as is done in DeFi banking projects such as MeanFi.
Commission costs
It is impossible to say the exact amount of commission in cryptocurrency transactions, but they are much smaller than bank ones. The latter provide about 10-15% (high-risk businesses get a higher percentage). In cryptocurrency operations, for example, on the Solana blockchain (on which the MeanFi project is built), commissions will cost you mere pennies.
Audits
Many people don't like frequent inspections by the bank, combined with a possible total blocking of accounts or denial of service. In such unpleasant situations, it is always possible to get to the bottom of it and probably regain access to assets - but how much time will be lost? How much effort will be lost?
In cryptocurrency transactions, the parties to the transaction take full responsibility. There will be no checks, but you always have to be careful, check the data you enter and the payments you make.
Transaction rate
Here cryptocurrencies win by a wide margin - transactions are almost instantaneous. Bank transfers often take 3 days or more.
Cryptocurrency transactions in the Solana network happen in seconds, which is what attracts a large number of people like you and me to this blockchain.
Income statements
Anonymity also applies to income reports to the governing bodies of the state: in the world of cryptocurrencies, it is not necessary to do them, while in traditional banks it is a necessity.
Periods of crises are scary, but it is thanks to them that one can decide to change. Digital assets will become a part of everyday life very soon, and to connect a payment system for goods or services with cryptocurrencies today means to make a contribution to a good, quality future.
Money Streaming is one of the key sub-graphs of the Mean Protocol that allows you to set up continuous payments over time.
So how can you use it? Very simple! Here are some examples of where you can use Money Streaming from MeanFi Protocol:
- Consumer Use Cases ( Simple Payments, Remittances & Family Allowance, Pay For Parking);
- Business Use Cases ( Subscriptions, Payroll);Retirement and Fundraising (Pension Plan Payments, Company RSUs, IPOs, ICOs, IEOs, etc., );
- Real Estate Use Cases ( Rent Payments, Real Estate Sales);
- Other Use Cases ( Donations, Inheritance, Tax Payment Distribution).
Personally, I've concluded that traditional banking is good enough, but it's still more of the past than the future. Today I choose decentralization, crypto and MeanFi Protocol!
Join the MeanFi project community on discord! There we can have a substantive chat with you about this topic and discuss MeanFi!