Privacy is an essential aspect of human life. Consumers want services and technologies that assure their optimal confidentiality and safety of data. The DeFi sector is a sector that prides itself on ensuring utmost privacy based on its decentralized platform. The DeFi removes time-wasting intermediaries in a bid to quicken the financial system and give sole autonomy to one’s money.
The traditional financial system wastes time with different procedures and protocols. Although most of them guarantee some privacy, the protocols discourage consumers from engaging in specific activities. ShapeShift saw the advantages the DeFi industry guarantees and explained its plans to move to the decentralized platform.
ShapeShift to embrace the decentralized space
ShapeShift is a digital asset exchange that is one of the newest firms making its moves to space. The Swiss-based company released a statement on January 6 on their current plans. The firm explained that it would no longer require customers’ details on its path to infuse the DeFi space into its system.
The issue of assuring privacy is the primary factor behind their adoption. Customer details will be anonymous based on the secrecy space gives its consumers. Customers will easily trade digital assets without the fear of data leaks to the hosting company. The former know-your-customer requirement will no longer hold relevance.
Asides from privacy, security is another factor the company considered. Data security and privacy go together. When data security is put in place, it all assures privacy. The DeFi protocols will guarantee privacy, the anonymity of transactions, and a clear framework for transactions.
The DeFi protocols will discount fees charged in transactions due to its direct and fast system that eradicates third-parties. The firm’s Chief Executive explained the step by recognizing that DeFi’s development rate is inspiring. He pointed out that the platform’s open-source nature helps create a good user experience and concluded by mentioning the firm’s integration with the system.
ShapeShift supports Ethereum
The firm already put in place a platform that supports individuals with ETH. It will also create a suitable platform that would embrace Bitcoin within the first three months of this year. The DeFi protocols are expanding at an incredible rate, mainly because many new investors in the cryptocurrency industry value privacy. Many people don’t want platforms to access their information, and the protocol allows them to enjoy those benefits.
So, individuals and groups can trade effectively but still maintaining anonymity. The exchange’s CEO, Eric Voorhes, revealed how centralized platforms work. He opined that they are black boxes and cannot be changed from the outside. Voorhes explained that customers have to trust those operators who can make those changes to keep their data private.
The top executive disliked the limiting effect the centralized platform gave its clients and shunned compulsory know-your-customer requirements. Since its creation, it never asked for personal details from its consumers until countries began putting up regulations to control digital assets in 2018. Last year saw numerous agitation for a transparent regulatory framework causing some inconveniences for old investors.