Traditional Finance vs. Web 3

Abstract

Web3 is a ground-breaking invention that has the ability to address the shortcomings of web1 and web2. The industry witnessing its major impact is the finance sector. A wave of innovation in traditional finance has been inspired by the introduction of Web3. It is also referred to as the decentralised web and is a developing movement that is upending conventional finance by providing a more open, safe, and decentralised substitute. Traditional banking should work to adopt the features that Web3 offers, including stability, scalability, interoperability, security, performance, extensibility, management, and openness. In order for TradFi to maintain its relevance and expertise in the face of the widespread adoption of digital financial modes, it is now necessary to embrace several Web3 capabilities. Keeping into consideration the relevance and importance of Web3 in finance, this chapter will basically focus on analysing the key features and characteristics of Web3 in comparison to traditional finance.