Cain Warwick, Founder of the DeFi derivatives platform SynthetixProjects like Ethereum will fulfill many of Fintech’s broken promises.
Warwick claims that despite ten years of development The development of the fintech sector was “hampered by the attempt to create infrastructures that are compatible with traditional systems”.
However, this has created numerous problems such as the lack of interoperability between the various systems of financial institutions and the introduction of regulatory obstacles to innovation:
“Fintech’s promise over the past decade has faced all of these obstacles that Ethereum can remove.
Think of companies like TransferWise, where the vast majority of the job is to avoid older infrastructures. This is not an environment that promotes innovation. “
Warwick spoke at a webinar on July 29 organized by the Melbourne Cryptocurrency Fund Apollo Capital.
Interoperability is the main advantage of Ethereum
In contrast to the fintech sector Ethereum is an open and license-free platform with internal interoperability. “When someone introduces a new infrastructure, it becomes automatically accessible to everyone else,” Warwick said:
“For example, some of the Synthetix contracts were taken over and integrated into other projects. […] And it’s not that easy to do in the fintech world. “
At the same time, Warwick admitted that some interoperability with traditional infrastructure is “required” if DeFi wants to welcome users from outside the crypto community.
DeFi acceptance in public is still minimal
Despite its very optimistic outlook Warwick emphasized that the DeFi sector “is still at an early stage of development”.
Highlight the popular browser extension Metamask Warwick believes the launch was “fantastic in the cryptocurrency world”. but outside of that environment it is still small.