How decentralized finance makes investing universally accessible

A visual look at decentralized investing

The latest (and last) graphic in our four-part series with Visual Capitalist looks at Abra’s role in the future of decentralized finance. 

Abra is building on Bitcoin to enable new kinds of financial products and services. These new decentralized financial systems share some basic characteristics:

  • Direct: Crypto-based systems, like Abra’s crypto-collateralized contracts, eliminate the need for layers of third parties, which decreases costs and increases the efficiency of global investing.
  • Location independence: Abra’s crypto-collateralized contracts make investment opportunities available around the world.
  • Programmable money: Money is getting smarter. The ability to create multi-signature contracts and other programmable features of Bitcoin and cryptocurrency reduces friction by reducing the time and cost of financial transactions.

This latest graphic from the Visual Capitalist builds on three previous related stories.

  • The first graphic looks at the seven major flaws of the global financial system. Among those flaws are the cost and inefficiencies associated with the traditional financial system including: a reliance on centralized systems, the continued lack of access to formal banking for 1.7 billion people, low financial literacy, high intermediary costs and slow transaction times, low trust in governments and financial institutions, rising global inequality, currency manipulation, and systemic risk.
  • The second graphic looks at what decentralized finance is, and how it can be used to address the shortcomings of the current financial system.
  • The third graphic in the series outlines how decentralized systems can be used to open access to investing and the larger financial system. The three main reasons for creating more (and simpler) investing opportunities are that people can use global markets to hedge against the inflation of traditional currencies, use investing to grow wealth through compounding, and diversify across different assets to protect wealth in challenging economic times.

Check out the latest graphic in the series that shows how Abra fits into all of this by building new kinds of financial products for a new kind of investing.

Check out the full story from Visual Capitalist:

Courtesy of: Visual Capitalist
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