Decentralized finance faces multiple barriers to mainstream adoption
While it may be one of the most popular sectors within the crypto market, decentralized finance still has barriers to overcome before reaching mass adoption. Decentralized finance (DeFi) is a growing market popular with experienced crypto users. However, there are some roadblocks regarding mass adoption when it comes to the average non-technical investor. DeFi is a blockchain-based approach to delivering financial services that don’t rely on centralized intermediaries but instead use automated programs. These automated programs are known as smart contracts, enabling users to automatically....
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Although decentralized finance has taken the cryptocurrency markets by storm in recent months, DeFi protocols can still be hard for the casual investor to understand. An often dangerous mix of complex concepts and never-before-seen levels of return on investment can attract many everyday investors into risky positions that ultimately result in them losing their hard-earned money. With complicated user interfaces and opaque business models creating barriers for entry for investors, decentralized finance protocols will only […]
With liquidity drying up in the wake of CeFi contagion, borrowers are turning to decentralized finance for their credit needs. Netherlands-based crypto investment firm Maven 11 has launched its third lending pool on Maple Finance, giving borrowers access to liquidity amid the bear market.The $30 million pool financed by institutional lenders will be utilized by trading firms that include Wintermute, Auros and Flow Traders, among others, Maven 11 announced this week. The new pool is designed “specifically for institutions looking for yield opportunities,” the company said. Maple, a....
Despite the finance service industry being bullish on blockchain and crypto, respondents still outlined cybersecurity as the greatest hurdle to mainstream adoption. Blockchain, the underlying technology of cryptocurrencies like Bitcoin (BTC), has already gained mainstream popularity, according to global finance executives polled by Big Four auditing firm Deloitte.According to Deloitte’s 2021 Global Blockchain Survey, 81% of the financial services industry (FSI) executives believe that blockchain technology is “broadly scalable” and has achieved mainstream adoption.Released last Friday, the....
A panel at the Blockchain Futurist Conference was asked about the future of decentralized finance and what was needed to be done to bring about mainstream adoption. A “killer app” for consumers is what will be needed to bring the decentralized finance (DeFi) sector to a level that draws in a mainstream audience, said Ripple Lab’s head of DeFi markets Boris Alergant.Alergant nade the comments during a panel at the Blockchain Futurist Conference titled "The Future of Decentralized Finance" on Aug. 9, which was covered by Cointelegraph reporters on the ground in Toronto, Canada. Alongside....
Barriers to Adoption. The fascinating emergence of Bitcoin has been powered largely by a "for us by us" dynamic, the growth of specialists intimately involved with cryptography, embraced by highly technical people of a wider variety. Eventually this bubbled up to the venture capitalist world, with a concerted attempt to "bring Bitcoin to the masses," including PR campaigns like that recently waged by Marc Andreessen in the New York Times. Although the "for us by us" approach has been successful in many instances, it also presents very large barriers to mainstream adoption. One of these....