Experts in the decentralized finance (DeFi) industry claim that while they believe in DeFi’s potential to revolutionize financial transactions, they still have a lot to learn from centralized finance (CeFi) companies. It may not be disloyal to DeFi for its leaders to examine CeFi services and see what users require. These insights can improve DeFi’s chances of success. Members of the Cointelegraph Innovation Circle have provided some examples of the lessons DeFi companies could learn from CeFi corporations.
Firstly, trust is earned, not given. Cryptocurrency market turbulence has damaged user trust in CeFi. Similarly, DeFi companies must remember that trust must be earned rather than automatically granted. Secondly, standardization, simplicity, and education can increase industry growth. CeFi has been successful due to its emphasis on commercialization, prioritizing user experience, and education. DeFi should adopt similar principles to encourage new user onboarding.
Thirdly, user experience and interface design should be a priority. CeFi company platforms are user-friendly, and DeFi companies should follow suit by incorporating similar design principles. Fourthly, accountability is vital for DeFi companies. In contrast, CeFi companies prioritize accountability with strong CFOs, regulatory compliance teams, and checks and balances.
Fifthly, user accessibility to education and assistance on platforms is valued. DeFi platforms have optimized their UX/UI design, but more assistance to help newcomers is still required, such as AI chat functions and discoverable educational materials. Sixthly, scaling must be carefully planned and supported. DeFi companies should reduce overuse of leverage and plan ahead for sustainable expansion to avoid damaging their reputation.
Seventhly, customer service is vital for all platforms, not just CeFi. Platforms should prioritize customer support to become more mainstream and support beginner users. Eighthly, DeFi should provide service levels to attract a wide spectrum of users. DeFi’s advanced tools should be combined with streamlined products to attract both novice and expert investors. Lastly, cybersecurity is critical for all industries and DeFi platforms must implement appropriate security measures to mitigate risks.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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