Traditional Banking vs web3: MeanFI comparing the difference, and what the future holds.

The traditional banking system has been in existence for over a century. It began with merchants seeking places to deposit their gold or cowries and became open to everyone. The existence of the traditional banking system became a good technology because nobody had to move around with money, and anyone could get their money when they needed it irrespective of the location they deposited their money.

In the least possible complex term, a bank is a financial institution where any member of the public could go to put his or her money. The individual depositing the money could have various reasons which may include:

Safety: It’s hard to get robbed if your money is in the bank. Same thing with money being misplaced.

Purpose: You may need to send money to someone on the other side of the country, or to seal a business deal. Whatever the purpose, the bank does not just grant a successful transaction but also keeps records of the transactions.

Advantages of Traditional Banking

• ATMs: ATMs are those machines you can slot your card into and withdraw money based on what you have in your account. They’re owned by traditional banks, which is a huge plus.
• Physical presence: You have an issue? Want to make your deposits in person? Want to take a loan? It’s easy. Walk into any of the branches.
• Physical customer care: have a problem with your account? They’ll be willing to listen and sort it out.

Web3

Web3 is an exciting new phase of technology where there are top priorities: privacy, decentralization, and security. However, the most important feature in this sector is decentralization.

Traditional banks are centralized. This means they are regulated and controlled. While this could be a good thing, it is also bad in the sense that one organization (usually the central bank) can issue a policy that every traditional bank will have to follow. Sometimes, these policies are not helpful to the traditional banking system.

Imagine a system where a bank is not controlled by one financial institution, but by the account owners in the bank. Before a decision is taken, there is a meeting that involves owners of different accounts in the bank to vote. Cool right?

This is what companies like Mean FI bring to the table.

MeanFI is a subset of the MeanDAO which has the vision to integrate web3 into the banking system to create a more reliable banking structure. Imagine a decentralized banking structure, it would skyrocket the advantages of banking to a whole new level. They still offer the same flow as a traditional bank, only with a unique approach. It beats the following problems as opposed to the traditional banking system

• No withdrawal limits: traditional banking systems have withdrawal limits, which sometimes make things difficult for clients.
• No central control: with this, they will be new ideas and innovations flowing into the system. All that is needed is for people to see your vision.
• Interesting features: From investment in innovative projects to automated payroll settings for your employees without stress or fuss.
• Open to everyone: Did I forget to tell you it’s open to everyone regardless of age or qualifications?

With cryptocurrency, Fast-spreading has a lot to offer to the financial sector. The eye candy is that it provides what the traditional banking structure offers in a unique world of decentralization. From investment in innovative projects to automated payroll settings for your employees without stress or fuss.

What does the future of Web3 hold?

Web3 would make things safe and interesting. With the aid of its aims and technology? It would bring lots of innovations to the financial space and investment opportunities across all sectors, not just the financial sector.