The decentralized financial sector of the cryptocurrency space has attracted a lot of attention in recent months, with the total value locked on the platforms that fall under it, therefore, breaking its previous historical maximum. While the amount of money contained in these contracts is experiencing a significant increase, there are some who have expressed concern regarding security related to DeFi, while agreeing that this particular space will continue to grow.
This includes Bobby Ong, co-founder of CoinGecko, who predicted that the total value locked in DeFi "would exceed $ 1B," and added that by the end of this year there would be more than 100 DeFi applications. However, Ong also generated alarms about the risk associated with DeFi and said: "At least 1 application of DeFi will be hacked."
Interestingly, another notable person who has recently spoken about decentralized finance is Zac Prince, CEO of BlockFi, in an interview for The Blockchain VC. Prince said that while DeFi has the potential to allow anyone from anywhere in the world to access it, however, it would always be a fraction of the size of centralized players.
“I don't think we will see a decentralized exchange begin to approach the size of traditional centralized exchanges. I don't think we will see a decentralized lender approach the size of traditional centralized lending companies in space. ”
Speaking about why he would not see the same success as centralized players, the CEO said there were "some inefficiencies created with the model." He also said that building a platform in Ethereum meant that "it is slow", adding that there would be technical difficulties.
“There is gas. You must be very careful every time you throw something and make sure it is perfect. Otherwise, you know, everything could be hacked or not work.
Prince also said that it would be "really difficult" to get institutional actors to participate in this particular space, adding that if there was no participation from that end, then "it cannot scale so much" and the platforms could not offer the best rates
“I think it's amazing. I think it's really great for certain things. I just don't think it's going to scale in the same way that centralized companies with the same central value proposition are going to scale. It is really difficult to gain some interest in DeFi (…) I think DeFi will have difficulties there in front of the centralized competitors. ”