CHAPTER 1: THE TRADITIONAL FINANCIAL INSTITUTIONS In our attempt to shed light on people new to DeF

От автора: 4
CHAPTER 1: THE TRADITIONAL FINANCIAL
INSTITUTIONS
In our attempt to shed light on people new to DeFi, we will start by first
going through the basics of how traditional financial institutions work. For
simplicity, we will focus on the highest leveraged institutions in the
traditional financial system, the banks, and discuss its key areas to see the
potential risks.
The Banks
Banks are the financial industry’s giants that facilitate payment