#Vaulta Web3 Bank, as a product of the combination of blockchain technology and finance, is reshaping the form of traditional financial services. Below is a systematic analysis of its core features, advantages, challenges, and future trends:
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### **1. Core Features of Web3 Bank**
1. **Decentralized Architecture**
Eliminates centralized control of traditional banks through blockchain technology, with user assets managed by smart contracts and distributed ledgers, reducing single point of failure risks.
2. **User Sovereignty Enhancement**
Users have complete control over assets through private keys, without relying on third-party custodians, achieving "self-custody banking".
3. **Smart Contract Driven**
Automatically executes operations such as loans, savings, and transactions (e.g., Compound's lending protocol), reducing human intervention and operational costs.
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### **2. Advantages Compared to Traditional Banks**
1. **Globalization and Permissionless Access**
Any user with internet access can participate, breaking geographical limitations (e.g., users in Africa obtaining loans through DeFi).
2. **Transparent Operations**
All transactions are traceable on-chain, improving audit efficiency and reducing corruption risks.
3. **Innovative Financial Products**
- **Flash Loans**: Instant loans without collateral (e.g., Aave);
- **Yield Aggregators**: Yearn Finance automatically optimizes investment strategies;
- **NFT Collateralized Lending**: Using digital artworks as collateral.
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### **3. Major Challenges and Risks**
1. **Regulatory Gray Areas**
- Significant policy differences between countries (China bans cryptocurrency trading, EU promotes MiCA framework);
- Anti-money laundering (AML) and KYC compliance challenges, such as the Tornado Cash sanctions incident.
2. **Technical Vulnerability Risks**
- Frequent smart contract attacks (over $2 billion lost in 2022 cross-chain bridge attacks);
- Loss of private keys leading to permanent asset loss.
3. **User Experience Barriers**
Users need to understand concepts such as wallets, Gas fees, and cross-chain operations, making it difficult for ordinary users to get started quickly.
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### **4. Current Development Status and Typical Cases**
1. **DeFi Native Projects**
- **MakerDAO**: Manages over $7 billion in assets through over-collateralized DAI stablecoins;
- **Uniswap**: A DEX with an average daily trading volume of $1 billion.
2. **Traditional Institutions' Layout**
- JPMorgan Chase launched JPM Coin for cross-border settlements;
- DBS Bank in Singapore launched a digital asset trading platform.
