Opinion by: Mike Cahill, Co-Founder and CEO of Dour Labs
Despite the institutional frenzy around the crypto and the stunning narrative of democratized investment access, most of the world’s population is still prohibited from traditional wealth formation.
Bring the US, for example – here, the top 10% of the earners have over 90% of all stocks. In a global scale, it is worse: billions of individuals have no financial literacy, digital tools or minimum funds needed to access the most basic investment opportunities.
Traditional institutions should do more than just invest in crypto to relieve this difference – they should start using digital assets for new cases of use.
The tradfi facet that is most sinking for interruption is equality. Investing in the shares of private companies is an opportunity reserved in history for rich and connected hyper. It is often silent within the most economical advanced countries. Enhancing access to equities worldwide can be achieved, however, by deseconding decentralized technology to the three key components of our financial system: price, implementation and negotiation.
The bedrock of traditional finances
Equities usually refer to the shares of private companies, and they are one of the most powerful tools for wealth creation. At the top of the regulation, the main factor that restricts accessing equities is the infrastructure that undergoes our financial system: stale and inaccurate pricing data, exclusive implementation areas and painful slow periods of regulating.
Price
Traditional equity markets are private. Here, pricing data is step by step behind non-disclosure agreements, paywalls and groups of individuals who want to keep this information on their own. Access to accurate, real-time pricing is what allows investors to make informed decisions, and this is the essential element needed to participate at all. If pricing data remains in the hands of those who can access or run in the right social circles, the system will continue to support only a small group of rich, privilege.
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Implementation
While many apps and platforms can make it like buying equally -as easy as pressing a button, the fact is that making these kinds of investment almost always require strict processes of betting and minimum investment thresholds that the sun -access -day -to -day accessible. While the public markets should be free from these obstacles, broker fees and geographical limits can still prevent participation. As a result, the current systems only promote “rich richer, difficult to get a more difficult” narrative.
Remote
Most entrepreneurs have experienced slow, highly bureaucratic and dangerous equity regulating systems in the area today. It can take several days for a single trade to end. If this is a cross-border trade, the settlement times may be lost. This results in capital locked, further avoiding smaller investors from participation -an effect of snowball that maintains access to equality -just as much as the hands of the most selective traders.
While these obstacles are undoubtedly systematically, they are too resolved. As history, time and time show again, change always forces a move. That is where the decentralized finances (DEFI) entered.
Reimagining infrastructure by defi
Decentralized technologies have the potential to reimburse the Trade infrastructure to create a system that is faster, easier to access and better and unlock new forms of participation in the same. This includes synthetic equity markets, tokenized private equity and even equity -based predictions.
Regarding the price, implementation and negotiation, the defi and tradfi have opportunity to work togetherIntegration of forces to offer a new foundation in the financial system that promotes equity, access and transparency.
Decentralized price feeds offer real-time, accurate price data on equities that do not come to the excess price of a Bloomberg’s terminal. They empower merchants of any background or location to access fresh data on the market to trade equally with the same knowledge as the most selective traders.
At the same time, decentralized implementation platforms provide markets for fractional, tokenized exposure equity. Now, if merchants are connected to the Internet, they can make trading supported by intelligent contracts that automatically match the trade, provision of liquidity and order fulfillment. It strengthens entrepreneurs to buy small, fractional stakes in these properties, empowering even the most common and secluded areas of the world owned by a piece of the same high-growth company as an accredited US investor.
Finally, the Defi regulating is almost instantly. That’s because the blockchain has removed the need for mediators, making it possible for equities to exchange with millisecond. This noticeably reduces the risk of counterparts as capital unlocking for continuing use, making it more attractive -trading with smaller players.
The construction of the next generation of financial
Creating a financial system that is truly democratized means more than encouraging institutions to buy and trade digital ownership. It means thinking again in the way of our Financial infrastructure exists and operates today. While the equal ones are one of the strongest wealth-generating tools available, most of the global population still cannot access them due to geography, heritage and privilege. By revolutioning prices, implementation and regulating through decentralized innovations, equality can be completely interrupted -closing the wealth gap that maintains billions -billions of people at the mercy of a selected few.
Opinion by: Mike Cahill, co-founder and CEO of Dour Labs.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
