This week, we had a chance to talk with our partner, Forward Protocol. They develop a user-friendly framework for fast blockchain adoption using smart contracts and Web3 apps.
We asked Forward Protocol about the impact DeFi had on investors, and how it can boost the global economy.
What do you find the most fascinating about DeFi?
DeFi’s most revolutionary feature is arguably the empowerment it brings to its users. People can finally reclaim complete control over their finances and assets. They no longer rely on the few to make decisions that will deeply impact their lives without the possibility of influencing said decisions.
What impact did it have on traditional investors?
DeFi, the first and most widely known application field of blockchain technology with Bitcoin, has steadily been at the forefront of popularizing cryptocurrency and blockchain technology. As decentralized finance evolves and catches the attention of more institutional players, it inevitably heads toward regulation and streamlining its operation. This builds confidence in the eyes of traditional investors and eliminates the biggest doubts they have had about cryptocurrency until now, such as scams and unpredictability.
Will traditional players invest in DeFi more?
We are already seeing major VCs breaking into the crypto space as they are starting to realize the technology’s immense potential. This trend will only intensify in the future following the spread of blockchain technology in exponentially more industries. One such great example is CV VC, which has granted us the honor of making Forward the first crypto project to invest in.
What issues about DeFi do traditional investors find the most challenging?
Two of the most challenging aspects that are cause for concern for traditional investors are cryptocurrency’s volatility and its speculative nature. Often, we, as professionals involved in the crypto industry, forget that blockchain is, by and large, an enigma for the majority of people. Crypto has consolidated its place neither in the daily life of the average Joe nor in the investment assets list of most of the traditional investment firms because they are still observing this new trend and waiting for the dust to settle before they deem it safe enough to include in their portfolio.
How can DeFi contribute to the global economy?
DeFi will be a pivotal instrument in the democratization of financial services. It not only provides inclusion in the financial system of people who were otherwise excluded, but it also puts everyone in charge of their own money. What can be more empowering than that? DeFi will soon (if not already) equal social equality, individual empowerment and transparency.
Let’s thank Forward Protocol for such encouraging and optimistic answers!