Sergej emphasized that Web3 shifts the paradigm from simply sharing content (a hallmark of Web2) to a landscape focused on ownership. This new phase allows users to own their digital assets, pushing for greater decentralization not just in finance but across social networks and various sectors. By promoting ownership, Web3 potentially diminishes the reliance on intermediaries, granting users more control over their interactions online.
2. Decentralized Finance Automates Transactions
According to Sergej, decentralized finance (DeFi) represents a transformative blockchain-based system that automates financial transactions via smart contracts. This eliminates the need for intermediaries, enabling users to engage in transactions globally without restrictions. The concept allows for a non-custodial approach, meaning individuals are not compelled to trust third parties for their financial operations; instead, they directly interact with programs that facilitate these transactions.
3. Composability Enhances DeFi Innovation
Sergej highlighted the concept of "composability" as a pivotal feature of decentralized finance (DeFi). He described how different blockchain protocols can be built upon existing frameworks known as "money legos." This modular approach paves the way for continuous innovation in DeFi, enabling developers to create new tools and products without the burdensome regulations typical of traditional finance, such as API keys and extensive documentation.
4. The Future Is 24/7 Trading
Sergej forecasted that the future of trading will operate 24/7 in a trustless environment, enabling self-custody trading for tokenized real-world assets and securities. He likened the efficiency of this model to the early days of the internet, noting that, just as businesses and consumers gradually recognized the value of online transactions, they too would realize the efficiencies inherent in decentralized trading systems.
5. DeFi Still Has Room for Growth
While discussing the current state of DeFi, Sergej noted that it represents only a small fraction of the broader financial ecosystem. He asserted that the total value locked in DeFi protocols is significantly lower than that found in traditional finance markets. As DeFi continues to attract more users and liquidity, there remains substantial potential for expansion in this space.
6. Intent-Based Swapping Minimizes Risk
One innovative solution presented by Sergej is intent-based swapping on the Solana network. This method allows users to declare their intent to buy or sell assets without executing the transaction themselves, significantly reducing the risk of encountering malicious activities, such as front-running. The protocol provides price protection by ensuring that the order is matched to the best available market conditions, promoting a safer trading experience.
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