Decentralized banking is a term that has been construed in the wake of the cryptocurrency boom.
That is because cryptocurrencies are the first intelligent asset that can create such a tool.
And because of this, many are referring to decentralized banking as “crypto banking.” Cryptobanks are decentralized platforms that provide the usual services that centralized banks provide, primarily lending services and credit scoring, but essentially cuts out all of the middlemen that a centralized bank uses. The people needed in a bank to approve loans and structure financial data are replaced in a crypto banking ecosystem bysmart contracts and p2p, peer-to-peer, services.
Currently, most of the network will be online, as all issues can be solved online. The “bank” takes shape in the form of a computer interface, whether on a desktop or a phone, and the currencies dealt with are mostly cryptocurrencies.
Next PagePrevious Page