Who is Decentralization For?

Everywhere around the world, we have built our modern lives using essential financial tools, like loans, digital payments or bank transfers, among others. It's now become clear that both for those left unbanked in the wake of progress and those seeking to do more with their assets, better solutions are needed. Often, decentralization is the answer.
By Naka
April 26, 2024

“We utilize AI and blockchain technologies to transform the way people discover, purchase, track and resell products. Our mission is to give people tools to help measure, optimize and monetize everything they wish to buy or already possess.” 

Dejan Roljic

Why does decentralization matter? 

Decentralization has been a hot topic in finance for a long time, but as unbanked populations remain stubbornly high despite the efforts from the traditional financial ecosystem, it’s becoming increasingly important as an alternative.

Decentralized finance, or DeFi, is the application of emerging technologies to make financial transactions available away from centralized institutions, while also removing third parties from the equation. The main components of decentralized finance are blockchain technology, the cryptocurrency that works with the blockchain, as well as the software that empowers people to transact financial transactions between each other. 

On paper, the advantages are evident: fewer middle men, faster and more efficient transactions.

There are, however, plenty more use cases for this tech. According to KPMG, “tokenization is ideal for owners of a single asset or a small portfolio of assets, due to the significant reduction of time and cost in offering investors the right to participate in fractional ownership and subsequent secondary trading.” In industries like real estate, this could be a game-changer, because tokenized illiquid assets can become liquid much more easily.

DeFi is not just a buzzword. It gives us the tools to face some of the toughest challenges in finance, especially the ones that have proven resistant to traditional approaches.

Industries where DeFi is making waves 

The UN has set 17 goals for sustainable development.

Fixing for financial inclusion solves seven of them.

Decentralized finance will, at some point, be important for pretty much all industries, but right now there are some industries where DeFi’s impact is already felt. In this section, we’re going to take a look at some industries leading in decentralized finance. 

The Adult Industry 

The adult industry has become colossal. Even when worth billions of dollars, it still has financial barriers working against it. Creators are often kept from getting paid, despite operating in full compliance with applicable regulations due to the financial industry’s squeamishness while dealing with a business that it considers to be of ill-repute.

Blockchain technology and crypto are an evident solution for this industry, offering new ways to perform transactions, while helping preserve confidentiality. 

Entertainment and Music

Blockchain implementation can help artists get closer to their audiences than they ever have been. With secure distribution for their content, there is a brighter chance for compensation, while allowing the fans to access and purchase their content. Both the music industry and the entertainment industry in general are creating new paths with the help of blockchain technology.

Some best selling artists, like Avenged Sevenfold, have already developed their own ecosystems, rewarding fans with digital assets they can own and plenty of exclusive access that would be impossible without technology.

Gaming and Gambling 

Gaming has been one of the most prominent industries adopting blockchain technology. The uses are various and sharp. We have seen examples of NFTs becoming more than just artwork, also working as a tool to access digital assets and providing gamers with ownership of goods. 

As well as gaming, gambling has been rediscovered with a decentralized approach. Familiar casino games like poker, roulettes, and sports betting are all being reimagined with blockchain technology. The phenomenon has generated its own name: GambleFi. Projects try to add blockchain-powered features like zero-loss betting systems, where users can reduce their risks.

Finance 

It might seem ironic, but finance is one of the industries that embraced blockchain technology first. Borrowing and lending platforms, and exchanges, are using blockchain to update and reinvent themselves. It’s amazing that an industry that could be threatened by blockchain, immediately found a way to incorporate such a progressive tech.

And we’re not just talking about smaller, more progressive firms. We’re talking about the giants of the industry.

Advantages for All 

There are 1.4 billion people in the world that don’t have access to traditional banking. For all of them, decentralization can be a chance to be connected with services that will make a huge difference in their life right now, but also in the future. 

While some of us aren’t even able to open a bank account or receive a loan, NAKA has developed the tech to make a payment Card and Scheme work for everyone.

Blockchain payments require little more than an Internet connection to function, and they are an immediate solution for places where over 50% of the population are unbanked, such as many countries in LATAM. This will guarantee a secure way to pay and get paid, as well as lower fees, and increased security. 

Traditional payments aren’t going anywhere. The time has come to serve the people that can’t use them.

NAKA’s Ecosystem bridges the gap between legacy systems and decentralized solutions in the payments industry.

If you are interested in issuing a customized NAKA Card to your customers, or if you are a merchant willing to accept these payments, we have a partners program for you. You can start making a difference today.