• Coinbase’s former Senior Engineer shares his advice to the DeFi Industry against the traditional financial systems.
• His estimates are that global e-commerce firms made $2.2 trillion last year while NFT makers made just $3.9 billion.
• The functions of DeFi include peer-to-peer lending and stablecoin issuance.

Blake West was a senior engineer for Coinbase. He shares some tips that may help the Decentralized Financial Industry (DeFi), compete better against traditional financial systems.

He did this via a 12-paragraph Twitter (NYSE:) thread on June 9, 2022, in which he started by posing a question: “Want DeFi to grow 100x from here? The answer is to be boring!”

First, he looked at the revenues of different markets. His analysis showed that global e-commerce firms made $2.2 trillion last year in revenues, while non-fungible token revenue (NFT), came from creators at $3.9 billion.

West believes that deferred speculative activity in NFTs and crypto is great, but it would be detrimental to the industry. According to West, the DeFi business needs move from speculations towards the mundane financial activities of legacy industries.

He said that DeFi would be a formidable opponent if it solved financial problems faster.

Ad spending did not only happen to “internet native” activities. It seized market share from television, radio and newspapers, among other things. It offered an easier way to address the same problem. DeFi faces the same challenge as every technology trying to change the status quo. The same problems must be solved, only better.

Binance Academy defines DeFi as the use decentralized networks, open-source software and other technologies to develop financial services and products. DeFi’s functions include the creation of monetary banking services such as stablecoin issuance, peer-to-peer lending, borrowing platforms and advanced financial instruments like DEX and tokenization platforms.

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