factor I think is holding DeFi back from mass adoption.

I’ve been thinking about what might be the impelling factor preventing mass adoption of crypto in the space. Could it be complexity, lack of user experience, and flexibility, or a lack of regulatory framework, accountability, education, and perception?

I think in the first case, many projects have tried to make their product flexible for users. Some even went the extra mile to introduce what we have today as a one-stop solution, just like Xpress, which I’ve used and which offers a variety of services cutting across all niches of DeFi. The last time I checked, they had plans to integrate a metaverse database for her users, which I find quite fascinating. There are others, though, and I see this aspect as a key area that could tackle the problem of the average Joe onboarding the cryptospace without being faced with highly sophisticated and complex technology.

Speaking of the second instance, I’ve been wondering, and I feel that for us to get to the threshold of adopters, it will take a combination of regulatory improvement, innovation, retail-facing products and services, and greater interoperability with legacy banking, transparency with proof of reserve on CEX, and financial services, because people are not moving 100% into DeFi right away, and the ongoing saga has reduced the confidence and expectations of the space, not just with CEFI.¬†

What other factors do you think could be the major hindrance to this move, and do you think regulation coming in is a good idea?

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13 thoughts on “factor I think is holding DeFi back from mass adoption.”

  1. Not to sound too techy or nerdy. But the real issues here are interoperability and accessibility. DeFi platforms are known for using a complex protocol to address these two areas, leaving more to be desired. The solution to these complications are simple, adopt easier to understand protocols for everyday crypto users. Once the bridges and wrapping are out of DeFi, we can then move to straight forward approach in adding liquidity to pairs. Otherwise, DeFi will remain a potential option with no real access to daily crypto users.

  2. In general, people want to feel their money is safe. Core design aspects of blockchain technology are incompatible with this and always will be.

    As a result even if all the factors you mention are addressed, the adoption will always be limited to entities with a higher risk tolerance, at least for the next few generations.

  3. I think it has a lot to do with complexity and security. It is still very hard for the common user to determine how income is being generated and it feeds into his fear of security. If dApps were more straight forward we would have wider adoption!

    Let me know if you agree!

  4. A lot of progress is being made in the crypto space in general. And of course, it won’t be smooth sailing. There would be drawbacks just as we’re seeing, but it does not remove from the bigger picture, which is that huge progress is being made.

  5. On ramps. Until you can go directly from a bank acct to defi, even the most useful products (like borrow/lend) will be one step out of reach for most people.

  6. It will happen. We’re seeing teams such as Polygon push incredibly hard towards mass adoption. In tech, time and funding. It will get there.

  7. [https://scamnewschannel.com/updated-crypto-scam-list-2020/](https://scamnewschannel.com/updated-crypto-scam-list-2020/)

    this is not counting legendary rugpulls of top coins like Luna or hacks for HUNDREDS of millions of dollars like Axie Infinity or the costant bridge hacks.

    Not counting hedgefunds that bankrupt or insolvent exchanges like FTX disappearing

    And not counting projects that despite actually trying they just die in bear markets.

    Also Greyscale is filing for bankrupcy and guess where prices of crypto all around the board will sink to if they are forced to liquidate their 633k BTC

  8. Xpress is a centralized platform, thats not crypto. They use crypto with users funds. Its not trustless.

    The answer is Education and defi is not prod ready.

    Education is the toughest aspect in all of marketing. Defi is far too complex for the average person and the average person can care less about money, they just want to live.

    Defi is not prod ready, it will take another 5-10 years for defi to be ready for mass adoption, possibly longer.

    A third bonus answer is regulation. No wealthy person is going all in one defi unless they themselves are in the industry. There’s no regulation, no insurance, no guarantees. Why convert USD to USDC for a 2% APR when you can invest in businesses and get higher ROI’s, or find other ways to get high yields?

  9. They’re building I must say, Xpress has sparked my curiosity because of its deflationary structure, NFT market, and the upcoming launch of its Metaverse bank, I think it has enormous potential.

  10. DeFi is a bit complex for an average joe, and that is a huge defect on it. though we can see how a few like Stx and Sylo have improved their ecosystem, making it easy to access and user-friendly. Made I believe that DeFi would surely figure its way out of its complexity. As for the regulations, the taxes on retail investors are much.


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