By George Ward
Over the past few months, the decentralized finance (DeF) sector has witnessed various malicious attacks and exploits from criminals, making many doubtful of the space’s security. Nevertheless, digital asset professionals are confident that the ecosystem will experience mass adoption in the future.
Recently, executives in the crypto and blockchain sectors aired their opinions of what would become of DeFi in the future. However, according to Anton Bukov, 1inch Network co-founder, the recent happenings in the centralized finance (CeFi) ecosystem have once again shown the role of DeFi.
Bukuv believes that it is only a matter of time before the entire financial industry transitions to the Web3 environment. The executive noted that Web3 comes with the solution to all the unpleasant events that have overshadowed the crypto industry as hacks and exploits continue to rise.
Bukuv further added that a switch to Web3 will positively impact institutional DeFi adoption in the years to come. According to him, “having a deep understanding of the benefits of transparency among institutional players will be the key to massive DeFi adoption.”
Then, he added, “this comes with trustless and self-custody technologies.” Finally, Bukuv advises upcoming DeFi projects to have a robust security framework.
The executive stressed the need for projects to implement security audits of their platforms before releasing updates. “This will save many firms from being too nervous in times of chaos and allow them to safeguard user funds,” he added.
In his opinion, Dmitry Tolok, co-founder of Primex Finance, calls for adopting insurance protocols to accelerate the widespread use of DeFi. “More insurance protocols will go a long way to ease concerns about potential hacks.”
Tolok further said that the DeFi ecosystem would see organic growth and development with insurance protocols in place. According to BNB Chain expert Alvin Kan, education is key to massive DeFi adoption.
He believes that with more users’ education, they will be able to carry out their due diligence to minimize their exposure to risks.
A Call For Regulation
Aside from education, some Web3 executives also stressed the need for comprehensive regulation to enhance the sector’s credibility among users. For example, the founder of the XSwap Protocol, Jay Sullivan, noted that rules have a more significant role in the mass adoption of DeFi.
An executive with World Mobile, Zachary Vann, noted that navigating most DeFi platforms can be pretty challenging for new users. “With an improved user interface and experience, the industry will significantly reduce the entry barrier for newbies,” added Vann.
The DeFi ecosystem is facing one of its most challenging periods, and the recent opinions of experts can make a difference in the years to come.