Traditional Finance vs. Cross-Chain Lending:
Traditional Finance:
Advantages: Relative security, legal regulation, solid documentation.
Disadvantages: High costs, slow processes, geographically limited.
Cross-chain lending (DeFi):
Advantages: Transparency, speed, global reach, low costs.
Disadvantages: Technical risks, market volatility, regulatory uncertainty.
Integration:
Current development: We see an increase in the use of cross-chain lending due to the potential of new technologies, attracting more users looking for alternatives to the traditional banking system.
Integration: Traditional finance is starting to adopt blockchain technologies such as tokenization of real assets, blending the benefits of both systems.
Balance: Investors and users may choose to use both systems based on the risks and benefits, with cross-chain lending being ideal for fast, global transactions, while traditional finance remains preferred for transactions that require more certainty and security.
In short, users can benefit from the benefits of both systems, where traditional finance can be a stable foundation, and cross-chain lending can open new doors to innovation and efficiency in finance.