As decentralized finance (DeFi) is gaining groundChainlink co-founder Sergey Nazarov believes there are two ways to achieve wider adoption.
Lecture at the Smart Contract Summit, Nazarov said he sees two ways DeFi can “fill the gap” and that is how more Web 2.0 companies would adopt these technologies.
“The transition is happening in two different key dynamics. The slowest path is the return of interests. We are currently in a low interest environment and the appetite to compete for performance will be great. The second and faster path is credit waning here brand-based guarantees and mathematical contractual guarantees. The slow fall is compelling, the fast path is scary, but we’ll see both. “
He added that one of the most exciting ways for DeFi is to start thinking about blockchain for financial products and moving away from the idea that blockchain is only for tokens. He said the industry will ultimately see investors holding crypto because they believe it has superior value over other financial products and not just having crypto as a means of diversification.
Nazarov relied on data, like market data, it’s always important, but so is privacy. He pointed to his last acquisition, DECO. The DECO protocol uses advanced cryptography and knowledge-free evidence to provide more privacy to its users.
Chainlink is a great player in the DeFi ecosystem. The LINK token has seen rapid growth this year as interest in it is at an all-time high, as previously reported by Cointelegraph.