Chainlink co-founder believes that there are two ways for mainstream adoption of DeFi

With the popularity of decentralized finance, Chainlink co-founder Sergey Nazarov believes that there are two ways to make more mainstream adopt DeFi.

Nazarov said in a speech at the “Smart Contract Summit” that he believes that DeFi has two ways to “cross the gap”, and more Web 2.0 companies adopt these technologies.

“This transition occurs in two different key dynamics. The slower path is the interest rate of return. We are currently in a low interest rate environment, and the willingness to fight the low rate of return will be great. The second way is the most The quickest way is through counterparty risk. This is the erosion of the solvency based on brand guarantees, and the reason why contract guarantees based on mathematics work. The slow process is convincing, and the fast development path is frightening, but we will See both situations at the same time.”

He added that one of the exciting possibilities of DeFi is that when people start to think about using blockchain for financial products, they will start to shift from the idea that blockchain is only used for tokens. He said that the industry will eventually see investors own cryptocurrencies because they believe that cryptocurrencies have a higher value than other financial products, rather than just using cryptocurrencies as a means of diversifying investments.

Nazarov pointed out that data like market data is always essential, but so is privacy. He mentioned the company’s latest acquisition of DECO. The DECO protocol uses advanced cryptography and zero-knowledge proof to provide users with enhanced privacy.

Chainlink is a leader in the DeFi field. As previously reported by Cointelegraph, its LINK token has risen sharply this year due to its interest in it reaching a record high.

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