The modern world has experienced many changes and developments over the past few years. The last decade alone has seen a significant rise in the uptake and use of technological advancements such as cryptos and blockchain technology. These developments in turn kick-started the use of the DeFi system. This system is meant to help transition the financial sector into a digitized and decentralized form that is more efficient. The wave has seen the development of a DeFi economy that is steadily growing at a very fast rate all around the world. These new developments aim to replace the traditional finance system that is currently used around the world. The traditional financial system uses methods such as taking loans, cashing cheques and making withdrawals. This system has been used as the main global financial system for decades. However, while globally practiced, this system has some very evident shortcomings that the DeFi system aims to fill. The Hybrid system (HyFi) is a financial system made up of the combination of the two mentioned above: The combination of the traditional system and the new DeFi system. Below is a description of the various systems. What’s more, this description will also assess whether the hybrid system’s formulation is nearly complete. How The Systems Work The Traditional Finance System The global finance economy has applied the use of the traditional financial system for decades. This system is mainly ce...
