DeFi Gaining Traction Over CeFi
• Synthetix (SNX) founder Kain Warwick states that the next wave of crypto users could prefer decentralized applications over centralized counterparts.
• Warwick believes that DeFi markets have mostly caught up to market participants’ expectations due to developments and ecosystem growth in 2021.
• He suggests that if DeFi can capture the current crypto audience, they may be able to keep them away from frauds and Ponzi schemes when the next wave of people enter the space.
The Emergence of DeFi
In a recent interview on Real Vision Crypto, Synthetix (SNX) founder Kain Warwick discussed his thoughts on the emergence of decentralized finance (DeFi). According to him, this sector has been getting more attention as investors become more optimistic about what it can achieve. Despite some hiccups along the way, he noted that DeFi has mostly caught up to market participant’s expectations with a slew of developments and ecosystem growth.
DeFi vs CeFi
Warwick believes there is now a good chance that decentralized options can attract more new users than their centralized alternatives. He stated that if DeFi can capture the current crypto audience, they may be able to keep them away from frauds and Ponzi schemes when the next wave of people enter the space. Additionally, he mentioned that since many protocols are now competitive with their CeFI competitors, it would make sense for people entering this space to choose DeFI over CeFI.
Benefits Of Choosing DeFI
Decentralized finance offers several benefits compared to its traditional counterpart such as increased transparency and safety measures for users which is why Warwick believes it would make sense for new entrants into this space to opt for these platforms instead. Additionally, he also pointed out that given how far we’ve come in terms of technology advancements within this sector, it would be easier for newcomers to understand how things work in comparison to before when things were less developed.
Conclusion
Overall, Kain Warwick suggests that if DeFI can capture the current crypto audience then they may be able to keep them away from frauds and Ponzi schemes when the next wave of people enter into this space. Furthermore, he also highlighted some benefits associated with opting for decentralized finance over centralized ones such as increased transparency and safety measures for users which makes it an attractive option overall.