This week, BlockBank has won the Blockzeit Weekly Award for blockchain project of the week. BlockBank focuses on combining AI, DeFi and CeFi and making it more accessible to the everyday user.
What is BlockBank?
BlockBank is designed to take the world of finance to the next level by introducing artificial intelligence to both DeFi and CeFi (centralized finance). BlockBank is a blockchain application which is a part of a movement called NeoBanking, the new world of banking which is “transforming global finance” as they say.
The BlockBank team believes that we are facing a revolutionary time in technology where things like blockchain and artificial intelligence are “transforming the global and financial landscape.” And BlockBank recognizes that the development of these technologies is transforming rapidly. The problem with this, however, is that now many of these applications for technologies like blockchain and AI are not useable to the everyday consumer because of tedious learning curves.
While BlockBank believes that the world of DeFi is highly innovative, they also need to address some major pain points within the industry. This includes poor user interfaces, lack of customer support. They say:
“A lack of easy-to-use and easy-to-understand DeFi applications is producing a lack of trust and lowering the adoption rate of retail market participants.”
So, we’re going to talk about specifically the core issues that cause these problems and what BlockBank is working on to solve them.
The core issues of DeFi identified by BlockBank
BlockBank believes there are three major issues specifically with decentralized finance:
- High Fees: Being able to use DeFi means trading on decentralized exchanges like Uniswap which use liquidity pools. Liquidity pools are often subject to high fees. And this scares away many potential new users to the space.
- Lack of on/off ramps: Additionally, the BlockBank team says that the overall lack of fiat on/off ramps is another wall to climb for greater adoption. Everyday people don’t want to have to spend hours learning about how to figure out how to get their money in and out of crypto, for example.
- Knowledge Gap: Finally, they say, “Another important factor is the knowledge gap between experienced users and those who have limited research who turn away from DeFi because they do not understand it.” BlockBank identifies the space as very complex with a large abundance of things to learn, for example, like managing one’s own funds independently and using multiple platforms.
They conclude that retail users do not have the time to spend learning how to navigate the world of DeFi and understanding all of it’s complexities such as risk management.
How BlockBank Will Make DeFi more accessible to everyday users
So, BlockBank will see automation and AI to make the world of DeFi adoptable and easier to use for newcomers. They say:
“Experienced traders, DeFi early adopters, and brokers created BlockBank for a new generation of independent DeFi users looking for trustworthy tools to help them leverage market opportunities within an exponentially growing industry.”
And this is precisely what BlockBank is all about. They will enlist an array of tools which they call “building blocks” in their application to help bring DeFi to the masses.
BlockBank has a fascinating team and mission behind it. If their mission succeeds to bring widespread adoption to the DeFi space, one can expect BlockBank to be a big player in the coming years.
Aaron is passionate about blockchain and has been an investor in cryptocurrencies for the past years. He enjoys engaging with other people in the cryptocurrency community online, particularly on Telegram, and learning from experts.