# Reducing Barriers to Entry

The traditional financial system has created tremendous value to the modern economy through the core functions of: 

* Value exchange: a way of making payments
* Intermediation: a way of transferring resources between savers and borrowers
* Risk transfer: a means for pricing and allocating risks
* Liquidity: a means of converting assets into cash without undue lost of value

Mapping the core functions over to the open finance ecosystem, we have witnessed and hypothesized the following:  

* Blockchain networks have expanded the function of value exchange through digital assets
* Financial service providers will continue to play a significant role of intermediation; organizing and facilitating transactions between counterparties 
* Financial instrument diversity will increase the efficiency in risk transfer functions 
* Liquidity will reach a sufficient level in an optimal functioning ecosystem comprised of financial service providers and participants 

The motivation in reducing the barriers to entry for all financial service providers is to stimulate intermediation and liquidity functions in the open finance ecosystem.<br>


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