Web3 has the potential to significantly change finance in the following ways:

1. Decentralized Finance (DeFi): Web3 promotes the development of decentralized financial applications, allowing financial services to operate independently of traditional centralized financial institutions. Users can directly engage in lending, trading, savings, and other activities, reducing intermediary costs and improving the accessibility and efficiency of financial services.

2. Cross-border payments and remittances: Web3 applications based on blockchain technology can enable faster and lower-cost cross-border payments and remittances, reducing the complexity of intermediaries and currency conversion.

3. Asset digitization and tokenization: Various assets, such as real estate, artworks, and even intellectual property, can be digitized and represented as tokens. This increases the liquidity of assets, broadens investment channels, and lowers investment thresholds.

4. Smart contracts: Self-executing smart contracts can ensure the accuracy and immutability of financial transactions, reducing the risk of default and disputes, while enhancing the efficiency and transparency of contract execution.

5. Financial data sovereignty and privacy protection: Users have greater control over their financial data, allowing them to decide how to share and use this data, while enhancing data security and privacy protection.

6. Financial inclusion: Web3 has the potential to provide financial services to those who cannot access traditional financial services, such as individuals in developing countries or those with insufficient credit histories.

However, the application of Web3 in the financial sector also faces challenges such as regulatory uncertainty, technological risks, and security vulnerabilities. $BTC #defi #山寨季将持续多久？ $BTC