Decentralized finance (DeFi) is certainly one of the biggest trends in cryptocurrency over the past year. This has led many businesses to decide that it is the appropriate time to create their own DeFi wallet or other DeFi.
However, this raises the question about how beneficial this actually is to business owners. As many of you might remember from 2017, the initial coin offering (ICO) and blockchain craze led many businesses to create blockchain solutions when those solutions were not necessary to the success of their business.
Anyway, this article will cover some of the businesses that might benefit from a DeFi banking wallet platform and those that likely will not benefit from that solution. And we’ll be frank with our solution, the overwhelming majority of businesses have no need for any sort of DeFi crypto banking wallet platform.
What Is a DeFi Crypto Banking Wallet Platform?
A DeFi crypto banking wallet is a very vague term, which makes it liable for many scams to pop up surrounding the creation of one of these wallets.
We’ll keep things simple, though.
Basically, a DeFi crypto banking wallet is any wallet that has the ability to sync up with the DeFi ecosystem. In most situations, this would simply be an Ethereum wallet that allows a user to use many of the dApps on the Ethereum blockchain.
That’s really all there is to it for the vast majority of business owners.
Can some business owners create their own dApp to help their business?
Sure, but if your business will benefit from a dApp, then you likely already know that. Most businesses do not have any use nor the required amount of customers to warrant creating their own dApp.
What Businesses Would Benefit From This?
The only businesses that would benefit from a DeFi wallet of some sort are those businesses that would benefit from plugging into the cryptocurrency ecosystem. Those businesses, at the moment, are currently only those in e-commerce or really any business that accepts payment from customers.
Basically, we’re saying that those businesses could use the DeFi crypto banking wallet as a way to accept a wider amount of payment from customers. They could also accept this payment for much less fees than they would when they use other payment processors (other than cash or check).
For instance, a business could create an Ethereum wallet, which would allow them to accept Ether or any ERC-20 token as payment.
That obviously opens the door for a lot more payment options for customers that want to use cryptocurrency. Of course, the most common option for cryptocurrency is Bitcoin by a wide margin, but it’s always nice to accept a larger amount of cryptocurrency if possible. And it’s so easy with an Ethereum wallet that it’s worthwhile in our opinion.
Businesses That Will Not Benefit From a DeFi Crypto Banking Wallet
This might surprise some readers, but most business to business or business to government businesses will likely not benefit from these DeFi wallets.
Businesses and governments are the least likely institutions to want to use cryptocurrency for any sort of transaction. Remember, the US Federal Government still uses fax machines for communication!
When innovation occurs in an industry, it generally occurs in those industries that serve consumers rather than other businesses or the government.
That covers it for the different businesses that would benefit from using a DeFi crypto wallet. Consumer facing businesses are the ones that will benefit the most from adding that wallet simply because it’s so easy to add one.
To answer the question, yes, add a DeFi banking wallet to your business if your customers are people (not governments or other businesses) because it will give customers more payment options and the fees are often lower than other payment options.