Ripple executive says that DeFi needs a "killer app" to get to the next level.
According to a senior executive at Ripple, DeFi is in need of a "killer app" to reach the next level.
At the Blockchain Futurist Conference, a panel was questioned about the prospects for decentralized financial systems and the steps that needed to be taken to bring blockchain technology into the mainstream.
Boris Alergant, head of DeFi markets at Ripple Lab, stated that in order to push the decentralized finance (DeFi) industry to a level that attracts a mainstream audience, the industry will require a "killer app" for customers.
The remarks were delivered by Alergant on Tuesday at a panel at the Blockchain Futurist Conference titled "The Future of Decentralized Finance." The panel was attended by Cointelegraph reporters who were on the ground in Toronto, Canada, covering the event.
In addition to Alergant, other participants on the panel were the CEO of Aventus Ventures, Kevin Hobbs, the co-founder and CEO of FLUIDEFI, Lisa Loud, and the CEO and co-founder of Teller Finance, Ryan Berkin.
The consensus among the panelists was that centralized financial institutions will, in the end, be the driving force behind the widespread adoption of decentralized banking. According to Alergant's hypothesis, growth will most likely result from the development of a user-friendly CeFi app that provides access to DeFi services:
"If you want to explain the process to a typical user, like your mother, you can teach her how to stake on Aave or ETH [...] and this is a procedure. She is not familiar with how to use MetaMask, but she is still interested in producing that yield in some way. She is interested in doing business but is unsure on how to go about it.
"So I think institutional acceptance is where it's going, and the institutions are what is going to enable [...] the killer app for consumers to really elevate crypto and DeFi to the next level," he said. "So I think institutional adoption is where it's going."
A similar point of view was voiced by Loud, the co-founder and CEO of FLUIDEFI. He pointed out that the average person eventually adopted the internet despite the fact that they did not comprehend the internet protocol suite, generally known as TCP/IP:
"I assume that we all make use of the internet, right? We experienced a paradigm change when we first connected to the internet, but we are still unfamiliar with the TCP/IP protocol. At the moment, everyone who uses DeFi is aware of how to use the protocols; however, this is neither a sustainable model, nor is it an effective one for adoption.
She continued by saying, "If we look over a period of two years, I see institutions investing more money in DeFi and I see companies making user experiences simpler."
In addition to this, the Ripple CEO explained that the DeFi sector and the CeFi sector would soon be cooperating closely with one another in order to deliver customer-focused financial services.
"In the end, DeFi will act as a supplement to CeFi and complement it. In the end, it doesn't really matter if a trade was conducted through centralized or decentralized means because the exchange itself is centralized. "I just want the best execution possible," he remarked. "damn it."
Related: the widespread adoption of decentralized financial systems confronts a number of challenges.
The Blockchain Futurist Conference is the world's largest annual blockchain and cryptocurrency conference, and it is currently taking place in Toronto, Canada. This year marks the fifth year that the conference has been held. Even though he only spoke two days earlier at the Korea Blockchain Week, it is anticipated that Ethereum co-founder Vitalik Buterin will make an appearance at this year's event and talk there.