Decentralization and Financial Inclusion: Empowering Underserved Markets through Web3 (and vice-versa)

3 min readJul 24, 2023

By: Arkan Akin, co-founder @ ToroNet

Decentralization lies at the core of crypto’s disruptive potential. By removing intermediaries and enabling trustless transactions, decentralized networks offer greater autonomy and control to individuals. As I mentioned in a previous article, crypto integrates into traditional finance, paving the way for an evolution rather than a revolution. This has significant implications for financial inclusion, as approximately 2 billion adults worldwide remain excluded from the traditional financial system due to the inability of existing business models to meet their needs. These changes offer enormous business opportunities as well as a new path for economic development.

Addressing the Needs of Underserved Markets

The global south represents a substantial portion of the underserved population, with limited access to basic financial services. Traditional banking models have struggled to integrate these communities’ diverse requirements and contexts. However, with the advent of Web3-based business models, there is renewed hope for a transformative shift.

The Promise of Innovative Applications

As the integration of Web3 and decentralized finance progresses, we can anticipate the emergence of a range of innovative applications tailored to the needs of underserved markets. These applications include microfinancing platforms, peer-to-peer lending networks, decentralized savings and investment tools, and more. By leveraging the advantages of decentralization, these solutions can provide greater financial agency and economic opportunities to individuals and communities previously excluded from financial marketplaces.

Web3: Unlocking New Possibilities

The next generation of the internet enables the deployment of networks of services that can address the unique challenges faced by underserved markets. Built on decentralized protocols and powered by blockchain technology, these models prioritize transparency, security, and user empowerment. By leveraging Web3, projects like Toronet are working towards solving the problem of financial exclusion in the global south.

ToroNet, as an example of a project in this space, is dedicated to developing innovative solutions that cater specifically to the needs of underserved communities. By utilizing Web3 technologies, Toronet aims to establish a decentralized financing ecosystem that bridges the gap between traditional finance and those excluded from it. This ecosystem empowers individuals by granting them ownership over their financial activities and enabling participation in a more inclusive economy.

Unlocking Real-World Value for Web3

The reverse is also true. Web3 has been criticized for its lack of real-world applications and predominance of hype-based investments and scams. Moreover, unsustainable yields in DeFi were mostly based on token printing rather than real economic value generation, which led to huge drawbacks and enormous losses for enthusiastic users. Projects like ToroNet that connect real-world economic activity with DeFi enable users to capture yield and real-world positive impact.

In that sense, this is a two-way relationship where Web3 unlocks new opportunities for underserved communities, and real-world economic activities are the way for DeFi to grow sustainably and meaningfully.

The integration of decentralization and Web3 technologies has the potential to revolutionize the financial landscape, particularly in underserved markets. By addressing the unique challenges faced by these communities, newer business models are poised to unlock opportunities for financial inclusion on a global scale. Projects like Toronet are at the forefront of this movement, striving to create networks of services that cater to the needs of the global south. As we look to the future, the innovative applications and social and economic practices enabled by decentralization hold immense promise in shaping a more inclusive and efficient financial system.

ToroNet is dedicated to serving underserved financial markets globally through blockchain technology. We envision a future where financial inclusivity is the norm. Our mission is to create greater opportunities for individuals and communities to prosper through innovation and accessible solutions. By utilizing cutting-edge blockchain technology, we strive to stimulate economic growth and create new avenues for prosperity in regions that have historically faced challenges.




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