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CEO Trustology: "DeFi can become the dominant mechanism in the field of Finance»

CEO Trustology: “DeFi can become the dominant mechanism in the field of Finance»

Trustology founder and CEO Alex Butlin believes that with effective scaling, decentralized Finance (DeFi) protocols can become the dominant liquidity pool.

At the BlockDown 2020 conference, Alex Batlin expressed his opinion on the impact that decentralized financing can have on the storage of digital assets. The head of Trustology contrasted the DeFi protocols with centralized exchanges, specifying that most exchanges operate regionally, taking into account the requirements of regulators in certain jurisdictions and customer preferences. As for the IP addresses of users using DeFi, here, according to the Ballina, we can talk about an international scale.

“Active development and increased speed of DeFi protocols can contribute to deeper liquidity and transparent pricing. Given the level of decentralization and expansion to a global scale, DeFi can become the dominant mechanism in the field of Finance, ” he said.

The CEO of Trustology noted that DeFi can cause certain difficulties for custodial services. The peculiarity of working with decentralized DeFi applications is that you can perform various “combinations”with an asset or smart contract. This refers to not only the storage of digital assets, but also the key storage and transaction management. Butlin mentioned integration with MetaMask, which allows users to sign transactions with a key inside the browser, as well as access to decentralized applications with full key protection.

However, despite optimism about decentralized funding, Butlin believes that for the widespread implementation of DeFi protocols, it is necessary to increase the scalability of platforms that support such protocols to 1,000 or even several thousand transactions per minute. Butlin stated that Ethereum 2.0 “strives for this goal” and added that recently there have been more blockchains focused on a certain range of tasks that have started to work seriously to improve their performance.

However, Litecoin founder Charlie Lee recently criticized the ecosystem of decentralized financial applications after discovering a vulnerability in the Fulcrum contract on the bZx platform.