Challenges With Centralized Finance?

Throughout history, we have witnessed instances where bankers and institutions have failed to effectively manage risks within the market. The 2008 financial crisis serves as a glaring example of the catastrophic consequences that can arise from such failures. It is undeniable that when a centralized authority governs the flow of money, risk accumulates in the core of the system, jeopardizing its stability as a whole.

Bitcoin and early cryptocurrencies initially aimed to grant individuals full control over their assets, but their decentralization was limited to the issuance and storage of these digital currencies. Thus, accessing a wider range of financial instruments remained a challenge until the emergence of smart contracts, which paved the way for the development of decentralized finance (DeFi) solutions.