Changpeng Zhao: obstacles to the DeFi

The finance decentralized (DeFi) are coming to crypto world to stay. During this year 2020, increasingly the main personalities of the crypto community have referred to the DeFi as the future of technology Blockchain. Why, Tokocryptro he dedicates his eventthe Indonesia Blockchain Week 2020, to this sector. In which Changpeng Zhao explains the obstacles to the DeFi.

The DeFi in the crypto market

Despite the existence since several years ago, it was recently that the DeFi became a recurring theme for the community. And is that, it is from now that we can speak of the existence of a sufficient infrastructure in the crypto market, thanks to the work carried out by organisations such as Binance or the Tron Foundation, as well as to finance decentralized can thrive within the crypto world.

In this sense, to the founder and CEO of the largest exchange in the world, Changpeng Zhao is now when people are beginning to accept the existence of these decentralized services in order to provide liquidity to the economy. Noting, however, that the DeFi are a sector at birth, so not all the projects that are born in this time are going to be successful.

Changpeng Zhao explains the obstacles to the DeFi in Indonesia Blockchain Week

Therefore, Changpeng Zhao warned during his speech that it is likely that the majority of the projects Defined in the present fail. Recommending to the crypto community to be very careful at the time of investing in platforms finance decentralized. Conducting a thorough investigation of each project before risking your capital. Therefore, although the platforms that survive will increase in value dozens of times, these will be the majority.

The challenges for the finance of decentralized

Also, commenting on the challenges faced by the DeFi to get its mass within the crypto market. Changpeng Zhao identified two main obstacles that need to be resolved for that finances decentralised to release all its potential.

The first of these obstacles is the lack of knowledge of the crypto users on the options that offer the DeFi for them. Since, as mentioned by Zhao, most people are not used to take care by itself of your money. On the contrary, the idea of entering a platform with an e-mail, and have technical support in case we lose our password, is it more common for us.

Therefore, to achieve the DeFi can get to the whole crypto community. The users of the system must first acquire the capacity to manage by themselves their personal information, access to their wallets, and all of the elements necessary to finance decentralized to be truly decentralized.

Finally, the second obstacle identified by Changpeng Zhao for the development of the DeFi, it would be the low scalability in the Blockchain of the main criptomonedas. Thus, while chains such as Bitcoin and Ethereum are exceeded when handling too many transactions. Other Blockchain more efficient, as the own Binance Chain, are still not very known by the public. By limiting the ability of the platforms of finance, on a decentralized basis.