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The DeFi Education Fund, which studies and promotes decentralized finance, has published a detailed analysis of how blockchain can help combat economic inequality. They believe that the current global financial system has serious problems, especially when it comes to helping people with low incomes.

Their focus is on the additional costs incurred by low–income families. These are all kinds of fees for international transfers, fees for cashing checks when there is no bank account, and other expenses associated with the complex structure of a conventional financial system. Due to the fact that the existing financial mechanisms are outdated and complex, it becomes unprofitable for companies providing services to serve low-income clients. As a result, this leads to the fact that simple financial transactions are more expensive for consumers.

The DeFi Education Fund sees the prospect of using decentralized finance as an alternative path. Their idea is to use blockchain and smart contracts to simplify financial transactions, removing unnecessary and automating the fulfillment of transaction terms. According to their calculations, if such solutions become widely used, it could save about $30 billion a year for people who find it difficult to access financial services. This is especially noticeable in international transfers, where DeFi can reduce fees by up to 80% compared to conventional methods.

It is important to understand that DeFi does not promise to completely eliminate all costs, but rather to make them less by restructuring processes. In addition to saving money, people will gain more control over their money and information about their finances.

In general, using DeFi to reduce economic inequality looks very interesting, showing the possibility of creating a fairer and more accessible financial system. But in order to move from theory to practice, it is necessary not only to have ready-made technologies, but also to create clear rules, which remains a difficult task for now.