Year-to-Year DeFi: Is Mass Adoption Here? Expert Response Part 1
Dominik is the co-founder and chairman of the Iota Foundation, an open source distributed ledger and cryptocurrency designed for the Internet of Things.
âThe biggest difference between crypto in 2017 and crypto in 2022 is establishing tangible business models and use cases within our ecosystem through DeFi. We no longer have to wait for external parties such as large companies to drive adoption. We can do it ourselves with apps that bring much needed innovation to the local level of our economy – finance.
2021 has been a great year for early stage validation and growing enthusiasm for DeFi’s potential. But it is still in its infancy. DeFi is not yet comparable to fintech companies like Revolut or N26 (2 to 5 million active users per month) or to established Web2 financial players like PayPal (361 million active users). It’s anyone’s game, as no DApp in the crypto space has been adopted en masse.
Heading into 2022 and equipped with the right Layer 1 networks, we are aiming for mass adoption. To achieve this, we need to remove barriers to entry for buying and selling crypto through regulated fiat bridges (like banks), revise the user experience, lower fees (anything over 0.1 $ is not acceptable) and provide the correct guide rails so that anyone can easily and securely participate in the decentralized economy (such as custody solutions, decentralized identity, and secure wallets).
DeFi legitimizes crypto and decentralized economies. Traditional financial institutions are already starting to participate. In 2022, we will only see an increase in use and adoption.
The beauty of permissionless innovation is that we are able to rapidly evolve as an ecosystem to find the best possible solutions. DeFi is the playground for the rapid innovation we needed to finally upgrade the financial sector with technologies that will enable everyone to participate in the global economy.