Ethereum
$518.09 1.89%
ETH · 17w

Synthetix Founder: DeFi Makes Legacy Fintech Obsolete

Kain Warwick, founder of DeFi derivatives platform Synthetix, argues that projects built on Ethereum can finally deliver on many of the promises that fintech failed to.

Despite ten years of development, Warwick said the fintech sector has been hamstrung by “trying to build overlays for the legacy infrastructure.” 

They faced issues with a lack of interoperability between the “siloed” systems of financial institutions, regulatory barriers to innovation, and the vast expenses associated with mainstream compliance regimes. He said:

“The promise of fintech over the last ten years has run up against all of these impediments and barriers to entry, and Ethereum really removes those.”

“Look at companies like TransferWise, where all of their effort is actually avoiding the legacy infrastructure — that’s just not a conducive environment to innovation,” said Warwick.

Warwick was speaking at a July 29 webinar, hosted by Melbourne cryptocurrency fund Apollo Capital.

Interoperability offers Ethereum agility

In contrast to the fintech sector, Warwick said Ethereum comprises an open-permissionless platform boasting inherent interoperability — where “once someone deploys some new piece of infrastructure, it is, by default, accessible to everyone else.”

“Some of the Synthetix contracts, for example, have been taken and integrated into new projects [...] and that's just not something that you have the ability to do in the fintech world,” said Warwick.

Warwick added that a capacity for interoperability with the existing legacy infrastructure is “required” if DeFi is to onboard significant users from outside of the crypto community.

DeFi adoption still ‘tiny’ outside of crypto

Despite his optimistic outlook for DeFi, Warwick noted that the DeFi space is still in its “very early phases.”

Noting that the popular browser extension Metamask has seen over four million downloads, Warwick describes its adoption as “amazin...

Continue on cointelegraph.com
Recent news
ETH +1.89% · en.cryptonomist.ch · 3h

Tether, $19 billion market cap: new record

A new record has been reached by the Tether (USDT) stablecoin, exceeding the threshold of $19 billion of market cap across all the different blockchains.
ETH +1.89% · clankapp.com · 11h

ETH whale tracker

Track and explore Ethereum whales in real time with ClankApp.
ETH +1.89% · cryptopolitan.com · 12h

Why Ethereum is more Gen z than Bitcoin

It is no surprise that Ethereum has the potential to appeal to the future generation because the inventor Vitalik Buterin was 21 when he launched the
ETH +1.89% · yieldfarmer.substack.com · 13h

DeFi Pulse Farmer Protocol Express

Welcome to the DeFi Pulse Farmer Protocol Express, a weekly recap of APYs and new pools on major protocols, and a weekly highlight on an emerging opportunity!
ETH +1.89% · blog.ethereum.org · 17h

eth2 quick update no. 21

Minimum ETH threshold hit 🎉; genesis on December 1st, 12pm UTC Get your nodes running! and monitor updates through genesis 👀 Eth2 genesis, December 1st. Get ready! This week, the deposit contract hi...
12