Using DeFi still presents many problems. People desirous of using DeFi need to go through intense self-education. These difficulties act as a huge entry barrier.
These issues are chiefly attributable to old technical infrastructure such as Ethereum 1.0. It is on this legacy platform that many of DeFi apps are built.
This makes using DeFi rather difficult. Access is possible only by individuals with technical knowledge of the various networks, wallets and exchanges. The new networks such as Solana and Polkadot were even more demanding, needing even more expertise to use them.
The issues with DeFi
Cross-chain transfer of assets is difficult owing to the difference in technical stands. For the lay user to begin using DeFi, the networks will need to make improvements to make the user experience seamless and easy.
The CEO of Minterest, Josh Rogers, said that with the improvements in technology, incorporation of security protocols, and the addition of newer financial products – the adoption of DeFi will increase.
The Fed has announced that it will soon raise interest rates to check inflation. This is likely to have a moderating effect on the currently buoyant crypto prices. The continued buoyancy of valuations in the tech sector is due to the value that they have been able to create consistently over a long period of time. The success of several e-commerce ventures, social media firms, and search engines bears testimony to this fact.
Despite inflation fears, Rogers felt that DeFi is poised for growth. Rogers said that institutional investors will also soon take to investments in DeFi. His optimism was driven by the fact that crypto regulation was slowly falling into place. Also, BTC was increasingly being perceived as a good hedge against inflation.
Adoption will further increase, he said, if the technical infrastructure is improved and the use of fiat currency to buy crypto is eased.