The idea of what DeFi was during the summer of 2020 is certainly, and thankfully, dead, said Adam Blumberg, co-founder and chief educator for Interaxis. But the sector is not perfect. As Daniel noted, we also have far too much power in the hands of too few people. Despite recent issues in DeFi, the sector is not shrinking or stalling. In fact, it’s really just coming to light.
The experiments in decentralization are not perfect, but that’s why they’re experiments. The successful growth of the DeFi ecosystem and technology has swung the pendulum and shifted the center. It’s possible that, because DeFi offers transparency, efficiency, disintermediation, and self-custody, this will become the norm across the entire financial system.
We need to remember, we’re still experimenting with the technology. We’re not sure how to use it. Mistakes will be made, said Blumberg. But what we’ve accomplished in the last few years is to build robust systems that don’t operate within the confines of traditional corporations, banking rails, or even geographical borders.
The move toward decentralization means we just have to let the market work. Let the protocols, teams, and systems make the necessary changes. DeFi isn’t dead or dying at all.