Everyone who uses a bank must know “What is Decentralized Finance?”

This article was translated into English by Google Translate by the author who understands only Japanese.

for that reason
“Isn’t this strange?"
I think there are many parts.

Of course, I try to provide meaningful information, but besides that, please use it to enjoy strange English.


※If you want to study Japanese, please read this together with the original article in Japanese.



Finally, there is a movement to decentralize existing banks.

>>> Link to TechCrunch “Building Decentralized Finance for Traditional Banks"

This is exactly one of the major changes that will completely overturn the way banks should be.

As a result, not only bank employees but also those of us who are using the bank normally now must understand this Decentralized Finance.


However, when you hear it like this

“Yes? What is Decentralized Finance? I heard it for the first time!"

“If you search, it looks like a word related to virtual currency! Then it doesn’t matter to me !!"

“I looked it up, but it’s difficult and I don’t know what this is! Tell me if you should know!"

Most people feel that.


Therefore, this time

“New form of bank Defi"

I will explain in an easy-to-understand manner.


By reading this article

◎, You can continue to use the bank with confidence by understanding the new form of bank Decentralized Finance.

◎, I can imagine what the bank will be like in the future

◎, This is not just about banks, so you can see how the workplace and organization should be in the future.


Let’s take a look at what Decentral is!


Defi is a new form of financial institution

First of all, to express what Defi is in one word

“New form of financial institution"



If you want to explain more concretely and easily

“ATM for all bank operations"

It’s like that.

We usually withdraw and transfer money at ATMs, but there are no bank employees in the transaction procedure.

A machine called ATM will do everything for you.

It’s a ridiculous story, it’s easier and easier to make a transaction with a machine partner at an ATM than at a counter, so I usually use an ATM.


“Then, if all the banking procedures are made into ATMs, it will be even more convenient!"

That is Decentralized Finance.

in short

“For all other banking procedures, this new form of ATM has become Decentralized Finance."

That is.


How convenient is Decentralized Finance that everything can be done with just an ATM!

So, let’s look at three specific points about what kind of changes will occur if the existing bank becomes this Decentralized Finance.

①, bank staff will disappear

②,Remittances and transfers can be changed quickly and inexpensively 24 hours a day, 365 days a year.

③, loan examination, insurance examination, etc. will be fair


Let’s take a closer look at these together!



① Bank staff will disappear

“As online banking and fintech (finance x technology) progress, bankers will no longer be needed."

It’s been a long time since I was told, but after all, bankers are still normal.

However, as Decentralization progresses, there will really be no bankers.


that is

“Because a financial institution without human intervention is called Defi."


In other words, it wasn’t Decentralized when humans were doing various procedures.


of course,

“I don’t know how to use an ATM!"

I think that there will be staff who teach for those who say, and staff who manage the system.

However, there will be no staff involved in remittances, deposits and savings, loans, insurance claims, examinations, procedures, etc.

All of them are automatically processed by ATMs and personal computers.


When asked like this

“Eh !? It means that the whole organization will be an ATM? Can you really do that? You need humans!"

You may feel that, but technically it is already possible.


Because, this Decentral is already quite popular in the world of virtual currency, and it can be maintained as an organization.

It is already technically possible because the products handled by this Decentral are simply changed from virtual currency to legal tender such as yen and dollars.

Moreover, Defi in the world of cryptocurrencies is already far superior to making all banks ATMs.

In the virtual currency Defi, there is not even one employee who manages the system and explains how to use it.

There are no employees in the organization who are members like employees.


If you go this far

“An organization with nobody? So how do you maintain an organization? Or is it an organization?"

It may be confusing, but it is an organization, and this is the mechanism that makes it an organization.


It is difficult for existing banks to reach this area, and it would be terribly confusing to say something more difficult with just understanding Decentral, so I will omit it this time.

However, workplaces and other organizations are gradually moving towards this new form of organization, so if you are interested, please read this article.

>>> “A new form of organization managed by AI What is DAO (Autonomous Decentralized Organization"  Will be explained in an easy-to-understand manner.(This is a Japanese article)

* Decentralized finance is a special application of this DAO organization to banks.



② Remittances and transfers can be changed quickly and inexpensively 24 hours a day, 365 days a year.

What happens when ATMs are used regardless of the procedure part?

What we can feel the most

“Remittances and transfers will be quicker and cheaper 24 hours a day, 365 days a year"

I think.


<Open 24 hours a day, 365 days a year>

The fact that everything is going to be an ATM is just expressed in an easy-to-understand manner, and it is actually made into an AI / program.

There is no need to set a holiday because AI and the program will handle all the procedures.

Therefore, the bank is open 24 hours a day, 365 days a year.

(Although transactions may stop only during system maintenance time)


<Commissions are cheaper>

Furthermore, there is no labor cost for AI, so the commission will be reduced accordingly.

If there is no fee, you will not be able to pay the salary to the person who performs the maintenance, and you will not be able to establish as a company, so the fee will not be completely eliminated, but it will be cheaper.

Actually, in the virtual currency Defi, there are things with a fee of about 5 yen.


<Remittance / transfer speed will be thousands of times faster>

And since no human hands are involved in the meantime, the speed of remittance and transfer will be greatly improved.

Even if you use an ATM now, it will take several hours to several days because human processing will be done in the meantime.

On the other hand, with Defi, all processing is automatic, so remittance and transfer will be completed early in a few seconds to a few hours.


Moreover, because it is 365 days a year, 24 hours a day, 7 days a week

“Ah, it’s already such a time, so the window will close!"

“If you make a transfer at an ATM at this time, it will be processed after tomorrow!"

No worries.

It’s very convenient, isn’t it?



③ Loan examination, insurance examination, etc. will be fair

Speaking of the next big impact,

“The examination of loans and insurance claims will be fair"


When you buy a house, take out insurance, get insurance money, etc., you will be examined.

With existing banks, human emotions are incorporated into these examinations.


For example, when making a loan.

Suppose you have been in a good job for the last 10 years and are paying utility bills without delay.

However, suppose that in the past there was a period of long unemployment and delays in payment of utility bills, etc.

In this case, as the psychology of the person performing the examination

“What should I do with this person? It looks like I’m sick now, but there’s something in the past!"

I am worried based on my emotions.


On the other hand, this is not the case with Decentral.

Although delays in past transfers may be considered as a small amount of penalty information, we will not decide not to lend it for that reason.

Because you are sick now, and your house and land will be mortgages (collateral) until you finish paying the loan, so you can collect the loaned money.

Therefore, even people who have failed various examinations due to the emotional part of the judges will be able to receive the examination fairly with Defi.



“Look at me now!"

It is that.

When viewed in this way, Decentral seems to be more human.


This time, we have taken up some of the changes that can be considered when existing banks become Decentralized.

There are many other things that can change, but Decentralized Finance will change the way banks are so much.

The movement to decentralize existing banks has only begun overseas, but it seems that this movement cannot be stopped.

Therefore, let’s deepen our understanding from now on before entering Japan in earnest.

After becoming a hot topic

“What should I do! What is Decentralized Finance? Is the money in my bank okay? What’s happening !?"

I’m confused if I start making noise

“You can’t deposit your precious money in something you don’t understand!"

If you do, you will not even be able to use the bank with peace of mind.




Decentralized Finance is a new form of financial institution that makes everything ATM.


On top of that, there are three specific changes

①, bank staff will disappear

“AI / program processes instead of humans"


② Remittances and transfers can be changed quickly and inexpensively 24 hours a day, 365 days a year.

“The AI ​​/ program handles all the procedures, so no holidays are required. No labor costs required. Immediate processing is possible because it is automatic processing. “


③, loan examination, insurance examination, etc. will be fair

“Since the existing examination is done by humans, emotions affect it. Defi examinations are conducted by AI programs, so fair judgments are made only according to numerical criteria. “


With this, you can understand the new form of bank Decentralized Finance and continue to use the bank with confidence.

I think I could imagine what the banks would be like in the future.

From a bank clerk

“If you keep going like this, you may lose your job!"

From our users

“It will be convenient!"

This is not just about banks, so the future of workplaces and organizations will be like this.


“It doesn’t matter to me!"

Instead, get in the habit of learning these changes and movements little by little.

To help with that, I distribute the information I purchased every day, so even if you are not interested in virtual currency,

“Get into the habit of learning"

In that sense, I would appreciate your favor in the Futahii newspaper.

>> Link to “Futahii Newspaper Category"









Posted by futa