According to the head of DeFi markets at Ripple Lab, a “killer app” for consumers is what will be required to advance the decentralized finance (DeFi) industry to a point where it attracts a wide audience.
The future of decentralized finance (DeFi) and what needs to be done to promote widespread adoption were questions that were posed to a panel at the Blockchain Futurist Conference.
On August 9, during a panel discussion titled “The Future of Decentralized Finance” at the Blockchain Futurist Conference, Alergant made the remarks.
Along with Alergant, other panelists included Teller Finance CEO and co-founder Ryan Berkin, FLUIDEFI co-founder and CEO Lisa Loud, and Aventus Ventures CEO Kevin Hobbs.
The panelists’ consensus was that centralized financial institutions will ultimately drive DeFi adoption into the mainstream. According to Alergant, the expansion will probably result from a user-friendly CeFi software that promotes DeFi services:
“For an average user, you tell your mom how to go out and stake on Aave or ETH […] and this is a process. She doesn’t know how to use MetaMask, but she wants to generate that yield somehow. She wants to transact but she doesn’t know how to do it.”
“So I think institutional adoption is where it’s going, and the institutions are what is going to enable […] that killer app for consumers to really bring crypto and DeFi to the next level.”
Similar sentiments were voiced by Loud, co-founder, and CEO of FLUIDEFI. He said that despite not comprehending the internet protocol suite, generally known as TCP/IP, the average person eventually embraced the internet.
“We all use the internet right? The internet was a paradigm shift for us, but we don’t know how to use TCP/IP. Right now, everybody who uses DeFi knows how to use the protocols, it’s not sustainable, it’s not a good model for adoption.”
“If we look at two years, I see institutions investing more in DeFi and I see companies making simpler user experiences,” she added.
The Ripple executive also explained how the DeFi and CeFi sectors will soon collaborate to offer users banking services.
“DeFi will ultimately supplement and complement CeFi. In the end you don’t really care if a trade is done through decentralized means in a centralized exchange. I just want the best damn execution,” he said.
The largest annual blockchain and cryptocurrency conference is called the Blockchain Futurist Conference. It will continue until August 10 in Toronto, Canada. This will be the fifth iteration of the conference.
Despite having spoken at the Korea Blockchain Week just two days prior, Vitalik Buterin, the co-founder of Ethereum, is anticipated to speak at this year’s event.
