The banking industry is going through a dramatic change. Wall Street controlled access to high-value assets, real estate, and capital markets for many years, dominating global banking.However, decentralized, transparent, and inclusive financial systems are made possible by blockchain technology, which is changing the norms.
0xEquity, a platform that uses blockchain technology to democratize asset ownership through fractional investing, is at the vanguard of this transformation. By removing obstacles to entrance, 0xEquity is successfully opposing Wall Street’s monopoly.
This article explores:
- The main distinctions between blockchain-based finance and traditional finance (Wall Street).
- How fractional ownership is upending old systems with 0xEquity.
- Decentralized finance’s (DeFi) advantages above conventional approaches.
Part 1: Wall Street vs. Blockchain – A Clash of Financial Systems
1. Centralized Control vs Decentralized Ownership
- Wall Street:
A centralized system in which access is managed by banks, hedge funds, and institutional investors.
high entry barriers (accredited investor regulations).
Limited openness (hidden costs, unclear pricing).
- Blockchain (0xEquity):
A permissionless, decentralized network.
Regardless of net worth, everyone can make investments.
Transactions are recorded on-chain and are visible and unchangeable.
2. Speed and Efficiency
- Wall Street:
Slow settlement periods (days for real estate, T+2 for stocks).
Middlemen, such as custodians and brokers, increase expenses and delays.
- Blockchain (0xEquity):
Near-instant settlements (Trades are automatically executed by smart contracts).
No intermediaries
3. Liquidity and Accessibility
- Wall Street:
It is difficult to sell illiquid assets, such as private equity and real estate.
The minimum investment is sometimes more than $10,000.
- 0xEquity’s Solution::
Micro investments (e.g., $10 for 0xequity) are made possible by fractional ownership, and tokenized assets can be traded around-the-clock on secondary markets.
4. Transparency and Trust
- Wall Street:
Pricing that is unclear (dark pools, hidden fees, etc.).
The possibility of manipulation (such as short squeezes and insider trading).
- Blockchain (0xEquity):
On-chain verification is available for each transaction.
Counterparty risk is eliminated with smart contracts. - To read more click here