Fantom Founder Andre Cronje: DeFi Has Long-Term Prospects

Fantom founder Andre Kronje. (Photo; Doc. Blocktempo)

JAKARTA – An important figure in decentralized finance or DeFi (Decentralized Finance), Andre Cronje, recently discussed DeFi in his blog post.

For information, DeFi or Decentralized Finance is a revolution in the financial system that utilizes blockchain and cryptocurrency technology. DeFi opens opportunities for people to create, store, and transact with digital assets securely and without having to go through central authority intermediation.

This system offers the same financial services as traditional financial institutions such as banks, but with a higher level of security and privacy. The presence of DeFi has had a major impact on the financial world, because it allows people to access financial services more easily and affordably.

The figure who is also the founder of Fantom (FTM) admits that he is not looking for new trends in the DeFi space. The reason is, DeFi is already solid and will have an upward trend. Currently, he is focused on Fantom's main development, through the Fantom Foundation. He noted there were four main points expected for Fantom, especially the regulatory and audit framework.

"So I don't see a need for the next trend in DeFi. I see DeFi as a trend. What we focus on at Fantom Foundation are: regulatory frameworks, audit tools, Layer-1 Throughput and scalability, Layer-1 user experience accounts, and recovery social,” said Cronje.

The FTM founder outlined that DeFi and other blockchain-based applications such as play-to-earn games, NFT digital art, social media, and so on are here to stay. It's just limited to access and the underlying technology.

“Defi, and other blockchain verticals (social media, gaming, arts, news, etc), will continue to exist, but they are limited by their current state and underlying technology access (just as the early web was limited by underlying technology and access). There is no 'new narrative'. There is no 'new trend', only the same thing. And that's a good thing," he added.

Furthermore, he explained that DeFi will have an ever-increasing trend and does not need a new narrative to make it even better. He describes the current state of the DeFi space as like the dot com bubble that was in the late 90s. According to him, the bubble did not destroy the internet but instead strengthened its presence of the internet. Therefore, the good projects that were born at that time still exist today even though others have collapsed.