According to Ripple Lab's head of DeFi markets, Boris Alergant, a "killer app" for consumers will be required to bring the decentralized finance sector to a level that attracts a mainstream audience.
Alergant made the remarks on Aug. 9 during a panel discussion titled "The Future of Decentralized Finance," which was covered by Cointelegraph reporters on the ground in Toronto, Canada.
Along with Alergant, the panel included Aventus Ventures CEO Kevin Hobbs, FLUIDEFI co-founder and CEO Lisa Loud, and Teller Finance CEO and co-founder Ryan Berkin.
The panelists agreed that centralized financial institutions would eventually push DeFi into mainstream adoption. According to Boris, growth will most likely be driven by a user-friendly CeFi app that provides access to DeFi services.
"So I think institutional adoption is where it's going, and institutions are what will enable [...] that killer app for consumers to really bring crypto and DeFi to the next level."
FLUIDEFI co-founder and CEO Loud shared a similar viewpoint, noting how the average person later adopted the internet despite not knowing the internet protocol suite, also known as TCP/IP.
"Don't we all use the internet? The internet represented a paradigm shift for us, but we have no idea how to use TCP/IP. Right now, everyone who uses DeFi knows how to use the protocols; this is not sustainable, and it is not a good adoption model."
"In the next two years, I see institutions investing more and companies simplifying user experiences," she added.
The Ripple executive also stated that the DeFi and CeFi sectors would soon collaborate to provide financial services to customers.
"Ultimately, DeFi will supplement and complement CeFi." In the end, it makes no difference whether a trade is conducted through decentralized or centralized channels. "All I want is the best damn execution," he explained.
The Blockchain Futurist Conference, which is taking place in Toronto, Canada, until August 10, is the largest annual blockchain and cryptocurrency conference. The event will be held for the fifth time in 2022. Despite his appearance at the Korea Blockchain Week just two days ago, Ethereum co-founder Vitalik Buterin is expected to speak at this year's event.