What can be done to overcome the chasm for DeFi?
As DeFi gains popularity, Sergey Nazarov, co-founder of Chainlink, has two things in mind that can be done so that DeFi will be more accepted.
Nazarov explained there were two ways necessary for Chainlink to “cross the chasm” so that it can get into the hands of several Web 2.0 companies.
“The transition occurs in two different key dynamics. The slower path is in the interest yield. We’re currently in a low-interest environment and the appetite to combat yield will be massive. The second, and the faster path, is through counterparty risk. This is where the solvency of brand-based guarantees erodes and math-based contractual guarantees come in. The slow case is compelling, the fast path is scary, but we will be seeing both.”
He said something that makes DeFi sell is that it can be used to make financial products and this is a plus for blockchain as people now understand that blockchain is not just meant for tokens. He mentioned that with DeFi, people will see the need to accumulate cryptocurrencies for other needs apart from expanding their investments.
Apart from market data, Nazarov added that privacy was another feature to benefit from. He gave an example with the DECO protocol he just bought saying it came with a more developed cryptography and zero-knowledge proofs so that users can be more anonymous.
Chainlink is well recognized in the DeFi community. The LINK token which comes from it has done so well this year, reaching an ATH of about $15.