What challenges does DeFi face?

Negative Performance

Applications based on blockchains are affected by the fact that blockchains are intrinsically slower than their centralized alternatives. These restrictions must be considered by those who create DeFi applications, and their creations must be optimized properly.

High Potential For User Error

DeFi applications shift the burden of responsibility from the middlemen to the end user. Many people may find this to be a drawback. When products are implemented on top of immutable blockchains, it might be difficult to design them so that the risk of user error is as low as possible.

Bad User Experience

At the moment, using DeFi applications involves more work from the user. DeFi applications must offer a concrete benefit that encourages users to abandon the conventional system in order to become a fundamental component of the global financial system.

Cluttered Environment

Finding the ideal application for a particular use case can be a difficult effort, therefore users must have the capacity to make the right decisions. The difficulty lies not just in creating the applications, but also in considering how they will fit into the larger DeFi ecosystem.

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