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Decentralized finance sounds complicated, but it’s really all about cutting out the middleman…

05 Aug 2021 | by: Patricia Miller

Prophecy DeFi – the exciting tech player poised to become the ‘Goldman Sachs’ of the new financial system

PROPHECY DEFI INC. CSE:PDFI

When you go into Starbucks and tap your card to pay, you might think it’s a pretty seamless transaction.

The money goes from your bank straight to Starbucks, right?

Unfortunately, it’s not nearly as simple as that.

In fact, there are countless stages to the transaction—it goes through the card processor, through the vendor’s bank, through a clearing house, through your own bank, and so on.

But why?

Why do you need all these bits in the middle?

Why can’t you just swap your money for the product?

Well, it’s because, up until very recently, the only way to keep a unique record of such transactions has been to store them all centrally.

There needs to be a central—and agreed upon—record that confirms the $5 you paid for your Starbucks hasn’t been used to pay for something else.

It’s the same for any financial transaction.

This is why we have banks, clearing houses, brokerages, stock exchanges…the list goes on.

They’re all essentially ‘middlemen’, processing the transactions you make and storing a record of them on a centralized system.

Of course, these middlemen cost you and the vendor money. They also slow things down. And—as is being discovered more and more these days—they are often vulnerable to being compromised and hacked.

This is a problem.

But Decentralized Finance aims to solve it.

In fact, the ‘DeFi’ industry (‘DeFi’ just stands for Decentralized Finance) is set to turn the whole financial system on its head and create a new trillion-dollar market in the process.

Getting into this megatrend on the ground floor could prove to be extremely profitable for smart investors.

And one exciting new company offering exactly this sort of exposure—while also using it to generate outsized returns—is Prophecy DeFi.

READ OUR EXCLUSIVE REPORT to learn more about the game-changing DeFi trend and how Prophecy DeFi is offering investors exposure

Why DeFi could become the means by which all financial transactions are conducted

As Prophecy DeFi’s CEO, and veteran of the banking industry, John McMahon points out himself- there is a big change coming to how the financial world works.

No matter how difficult it might seem right now, the financial system will be transformed over the coming years. It might happen sooner than we think as well.

It’s all down to something you’ve likely heard spoken about before:

Blockchain technology.

Problem is, talking about blockchain technology can get very complicated, very quickly.

But here’s a simple way to think about it:

In the future, thanks to blockchain technology, when you pay for your Starbucks, you will effectively be able to transfer your money directly from your account to Starbucks—without the need for any middlemen.

You see, because of the trustless, peer-to-peer way blockchain technology works, there won’t be any need for institutions like banks to keep a centralized record of transactions.

The blockchain stores all the information that’s needed.

And it’s decentralized, too. In other words, the information isn’t all stored in any one place that can be easily tampered with. Instead, a blockchain is stored and maintained across many computers and linked together though a peer-to-peer network. Blockchains are made up of “blocks” of transactions, that quite literally date back to the beginning of their creation. And this chain is both completely transparent and immutable, which is important for maintaining a record of transactions.

This decentralized nature also means a blockchain is much harder to hack as the users of the network agree to approve, or authorize the next block of transactions. Plus, because it means you can skip out the middlemen, transactions can be done much more quickly while incurring fewer costs.

Of course, it’s still pretty hard to get your head around. And for many—investors and companies alike—this is one of the key barriers to entry right now.

But Prophecy DeFi is overcoming these barriers in a big way.

In fact, the grouppresents a unique opportunity for smart investors looking for exposure to the DeFi market at this early and exciting stage.

And make no mistake…

This change is happening. Slowly but surely, we are set to see the financial system evolve around us.

As it does, new leaders like Prophecy DeFi will emerge that dominate the space and take the place of more traditional companies too slow to adapt and embrace the technology.

Indeed, Prophecy DeFi could be poised to become the Goldman Sachs of the new financial economy.

How Prophecy DeFi is providing smart investors with access to this growing industry

PROPHECY DEFI INC. CSE:PDFI

Founded by John McMahon—who has decades of experience working in banking and the financial sector—Prophecy DeFi aims to provide investment and support to technology companies that will ultimately be the architects of the new Decentralized Finance (DeFi) industry.

To help him and Prophecy DeFi do this, as well as putting together an extremely driven and ambitious management team, and establishing an insightful and experienced board, Mr. McMahon has also brought on Alex Tapscott as Chairman of its Advisory Committee.

This in itself is a big signal of intent.

As well as being the co-author of the best-selling, go-to book on blockchain technology (Blockchain Revolution), Tapscott is the Managing Director of Ninepoint Partners’ Digital Asset Group; an already hugely respected thought-leader in the DeFi space.

Not only that, but Tapscott is also a co-founder of the Blockchain Research Institute, which Prophecy DeFi has also now joined.

This membership opens up the door to a research library of 100+ projects and a global community of blockchain innovators, experts, builders, and thought leaders spanning more than 90 of the world’s leading enterprises, governments, associations, and technology platforms.

By leveraging the insight and experience of the management team, people like Tapscott, and groups like the Blockchain Research Institute, Prophecy DeFi has emerged as a global thought leader on the future of Decentralized Finance.

Prophecy DeFi has already made one key investment in a leading blockchain technology company, Layer2 Blockchain Inc. (or “Layer2”), which will play an integral role in unlocking DeFi’s potential. Prophecy DeFi acquired an initial 60% stake in July and anticipates acquiring the remaining 40% within 6 months.

Layer2 is one of the pioneers in its field and its co-founder, Andrew Young, is perhaps one of the most experienced developers in the DeFi space. The work Layer2 is now doing in establishing the technology and the future of DeFi puts it firmly at the forefront of the industry and, by extension, gives Prophecy DeFi a huge first-mover advantage.

Not only that, but Layer2 is able to take advantage of opportunities that—due to a lack of technological know-how—virtually no other firms are able to exploit. Perhaps most excitingly, this includes providing liquidity to early traders in the DeFi space.

Layer2’s business segments

It’s something that is already helping to generate significant revenue, but the true potential is still yet to be realized.

Indeed, the whole DeFi space is set to explode.

Bear in mind that much of this technology simply wasn’t available or understood by anyone even just 12 months ago…

Yet in that time alone, the DeFi market has already grown from less than a billion to more an estimated $60 billion, or 60x.

And this is just one part of the bigger crypto-assets market that is now valued in the trillions.

Still, this is just the start for DeFi…

For a deep dive into Prophecy DeFi’s plans to ride the rapidly-emerging and hugely exciting DeFi trend, DOWNLOAD OUR EXCLUSIVE REPORT

Prophecy DeFi is perfectly positioned to rise up on this brand-new wave of wealth

From here, the plan for Prophecy DeFi is to continue to place strategically focused investments in companies that complement Layer2’s work and help to build and support an entire ecosystem of blockchain-driven technology in the DeFi space.

The fact is, in the new decentralized financial system, it will be pioneers like Prophecy DeFi who are able to carve out a leading role now who will be most successful in the future.

And what’s particularly exciting is that Prophecy DeFi is one of the few ways—perhaps the only way—that a smart investor can get exposure to this game-changing industry on the public markets with reliability, credibility, and regulatory assurance that is otherwise so lacking in this space.

Prophecy DeFi itself is a well-funded company (having recently completed three fund-raising rounds), and with the likes of Alex Tapscott of Ninepoint Partners, and Andrew Young of Layer2, who are involved in helping identify the right investment decisions…

It is on course to become a dominating force in the DeFi industry.

Smart investors will be quick to seize this opportunity and to give themselves a foothold in what is poised to become the financial industry of the future.

Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

  • Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.
  • Patricia Miller has been paid to produce this piece by the company or companies mentioned above.

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