Opinion of: Merlin Egalite, co-founder of Morpho Labs
Fintech at the front, decentralized finance (DEFI) at the rear: the Mallet DEFI.
Today’s fintech companies offer excellent user experiences but are limited by traditional financial infrastructure – partitioned, slow, expensive and inflexible. Meanwhile, DEFI provides a rapid and profitable and profitable interoperable infrastructure but lacks traditional accessibility.
The solution? Combine the distribution and user experience of Fintech with the effective Back-End of Defi.
The mule is inevitable
Fintech companies are counting strongly on traditional financial infrastructure (tradfi) which are partitioned, slow to deploy and execute, and costly to maintain. This ineffectiveness limits their control over costs and product offers and has potential infrastructure risks. Fintech is a strong incentive to move to the construction of an autonomous and credibly neutral public infrastructure.
Defi’s power is obvious in the stablecoins. While traditional international metal transfers cost $ 30 to $ 50 and take one to five working days, stablecoin transfers only cost hundred and settle in seconds. This revolutionary improvement in financial infrastructure extends beyond payments. DEFI provides an infrastructure 24/7/365 for trading, loans and loans with instant settlement, free access and deep liquidity, allowing better execution and price yields.
By connecting their ready for compliance with DEFI infrastructure, Fintech companies can focus on creating exceptional user experiences. This opens up enormous innovation opportunities while driving more liquidity, creating a positive feedback loop to adopt the DEFI MULLET.
It is now time for consumer adoption
Today’s challenge ecosystem has proven its reliability for fintech integration. There are dozens of protocols that demonstrate this maturity, safely managing billions of loans by immutable conceptions and minimized by governance. DEFI The infrastructure gives fintech total control of their infrastructure. This is particularly crucial after the recent bankruptcy of Synapse which trapped the user funds of Yotta intended to be provided by the Federal Deposit Insurance Corporation.
Recent: Bitcoin Defi will have 300m users, beating Ethereum and Solana: Exec
The institutions also arrive under the shelter. BlackRock tokenized a fund via security; Stripe has acquired a bridge for $ 1 billion to scale its stablecoin solutions; The United States creates a Bitcoin strategic reserve (BTC); And clarity on regulations open the valves. The change is step by step but tangible.
Defi has arrived.
The next phase
For the coming years, expect more products such as the loans supported by cryptography are published by the most advanced players in Fintech, offering ONCHAIN economy accounts, ONCHAIN loans, instant international payments and more.
This transformation will be invisible for users and supplied by intelligent portfolios and the abstraction of accounts that will maintain the familiar web2 user experience in which fintech companies excellent. The first adopters will benefit from significant advantages compared to competitors.
However, unlike relying on traditional finances, the open infrastructure of DEFI means that even latecomers can benefit from the existing network effects without starting at zero.
Some skeptics argue that the involvement of fintechs and traditional institutions will erode decentralization, because protocols must comply with regulatory requirements. Although this concern is understandable, the opposite is more likely.
Expect the protocols to comply with each jurisdiction in the world are not realistic, in particular given the vast regulatory fragmentation. Instead, the regulation of applications that interfaces with users have much more sense rather than underlying protocols. For this regulatory model to work, however, protocols must remain credibly neutral.
A credibly neutral mechanism adheres to four principles:
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He does not integrate any preference for individuals or specific results.
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It is open-source with a publicly verifiable execution.
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It’s simple and understandable.
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It rarely changes.
Examples like HTTP and SMTP demonstrate the power of credible neutral protocols – they are free, open and unregulated, with only customers subject to surveillance. The same logic must apply to the immutable and immutable minimal governance protocols.
These constraints will push the manufacturers to define towards the creation of truly decentralized systems and without confidence.
Fintech integrating the DEFI protocols can rely on the most neutral infrastructure and access their growing network effects.
Let the mule grow
The Mallet DEFI is more than a simple meme – it is a structural change.
On a scale, DEFI must meet users where they are: thanks to regular and friendly fintech channels. For the fintechs to remain relevant, they must offer their customers the best user experience and the best opportunities, such as the best prices. Those who are missing this opportunity may fall into non-record, a bit like traditional retail banks losing market share in today’s fintechs.
This convergence is not only possible – it is inevitable.
Opinion of: Merlin Egalite, co-founder of Morpho Labs.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
