Web3 executives are confident about DeFi's bright future despite security issues

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Web3 executives are confident about decentralised finance (DeFi) having a bright future even though the DeFi space has been a hub for various hacks and exploits ever since it came to be.

The executives explained that for broader DeFi adoption, it is important to educate institutional investors about it apart from removing user experience barriers for retail investors.

The co-founder of 1inch Network, Anton Bukov, highlighted that the recent shenanigans in the centralised finance (CeFi) world have unmasked the importance of DeFi. He believes that with time, financial systems all over the world will surely shift to Web3 solutions.

“My advice to any DeFi project is simple – don’t be lazy to do several security audits before releasing any update, this will save you a ton of nerves and highly likely – users’ funds,” Anton said, explaining the importance of security audits and pushing for better security measures.

The co-founder of Primex Finance, Dmitry Tolok, said that more insurance protocols might help widen the adoption of DeFi while talking about DeFi security. He further said that a mature market with better mechanisms in place to deal with vulnerabilities would result in heightened investor confidence. 

Alvin Kan, BNB Chain executive, talked about the importance of education to help broaden DeFi adoption. He explained that given the permissionless and digital nature of decentralised finance, there will always be risks, but the risks can be minimised if the users understand what they are doing.

Zachary Vann, an executive at World Mobile, explained the importance of working on user experience. He believes that DeFi can be a challenge for newcomers and may overwhelm them, and once the user experience problem is reduced, the barrier to entry will shrink, which will lead to many more retail investors investing in DeFi.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash