The DeFi space, while extremely innovative, is not available to everyone. Many people have trouble with it, causing them to experience exclusion, so to speak. This was noted by one of the heads of Ripple at a recent conference in Toronto.
The future of decentralized finance
A panel entitled “The Future of Decentralized Finance” was held at the Blockchain Futurist conference in Toronto on Tuesday, August 9. Its speakers were the Head of DeFi Markets at Ripple Labs – Boris Alergant, CEO of Aventus Ventures – Kevin Hobbs, co-founder and CEO of FLUIDEFI – Lisa Loud, and co-founder and CEO of Teller Finance – Ryan Berkin.
A very important issue was addressed during the event. The speakers were asked about the future of decentralized finance and what steps need to be taken for it to be accepted into the mainstream.
For Boris Alergant, the answer seemed quite clear. As he put it, a “killer app” is required here. According to him, the increase in adoption will come from a user-friendly CeFi app for exposure to DeFi:
“For the average user it can be difficult. You tell your mom how to go out and use Aave or ETH, and it’s a process. She doesn’t know how to use MetaMask, but she wants to generate profit somehow. She wants to make a transaction, but she doesn’t know how to do it. So I think institutional adoption is where it’s headed, and institutions are what will enable ‘killer app’ access to consumers to really bring cryptocurrencies and DeFi to the next level.”
History teaches
Lisa Loud confirmed the view of the previous speaker. She pointed to the adoption of the Internet and the fact that the average user of the Internet so far has little understanding of how protocols such as TCP/IP work:
“We all use the Internet, don’t we? The Internet was a paradigm shift for us, but we don’t know how to use TCP/IP. Right now, everyone who uses DeFi knows how to use the protocols, it’s not sustainable, it’s not a good adoption model. If we come back in two years, we’ll see institutions investing more in DeFi, and we’ll also see companies creating simpler user experiences.”
DeFi to partner with CeFi – is it possible?
Meanwhile, Boris Alergant has no doubt that the DeFi sector is even destined to partner with CeFi. He stated that:
“DeFi will eventually complement and complement CeFi. At the end of the day, you don’t really care if you trade through decentralized means on a centralized exchange.”
A few weeks ago, we wrote about another interesting opinion on the same issue. If you haven’t read it yet, take a look at the article titled: “Mark Cuban says the bear market will end after crypto-apps become useful”.
