There is no doubt that Web3 holds the potential for faster, simpler, and smarter payments. With Web3, the catchphrase “decentralised” has taken on a more revolutionary meaning. It has become, in essence a rallying cry, a call to challenge conventional ideas and the design of the old ways of doing things.
Web3 and decentralised blockchains are having an impact on the financial services industry. In fact, the whole idea of traditional banking and financial services models is being revised, and decentralised models powered by Web3 are set to be the new normal.
Unbundling Traditional Banking Models
Traditional banking models operate in a centralised system through banks, financial institutions, and governments. However, it has become evident that this form of financial access is unsustainable today giving the changing dynamics of the modern world. The present payment model thrives on bureaucratic bottlenecks and barriers to entry that excludes much of the world’s population. These payment models are designed for exclusion rather than inclusion.
Blockchain technology is unbundling traditional finance and revising conventional banking models by putting the power back in the hands of those who matter most — the people.
Decentralised finance (De-Fi) models proposed by Web3 will reorganise traditional payment infrastructure, and open up access to finance and banking services to everyone with a smart phone anywhere in the world. By eliminating intermediaries through Web3, payments services and financial solutions are open to anyone, and the usually high fees charged by intermediaries are non-existent.
Web3 as the Future of Payment
Web3 offers an array of possibilities that are hitherto non-existent or out of reach for the majority. Payments models under Web3 are borderless, peer-to-peer, and can support multiple tokens and blockchains. Decentralised finance is scalable and flexible and promotes ease of use, data security, and privacy.
Web3 has far-reaching impacts, especially in building new financial infrastructures to power the future.
