[BlockTwits Live] Crypto Expo Asia 2022 - DeFi vs CeFi

BlockTwits reporting live at Crypto Expo Asia 2022 in Singapore. The panel, moderated by Charles Kok (UOB Venture Management), along with Karan Sharma (ZeltaTech), Jon J. (MarinaChain), Marouen Zelleg (ConsenSys), Andrew (Blockdaemon), and Lucaz Lee (Affyn), is in a discussion about DeFi vs Cefi.

Moderator: What’s the difference between CeFi and DeFi, in layman’s term?

Panelists: Users have complete ownership of their funds while using DeFi. In real life, CeFi is like a bank; every transaction will need to be approved by the bank. By using CeFi, users trust the centralised platforms to perform transactions on their instruction. Meanwhile for DeFi, it is based on trust in the blockchain technology and smart contracts protocol.

Moderator: In future, will DeFi replace CeFi, or will they coexist?

Panelists: More likely they will coexist, as both serve different purposes. In future, crypto users may have more choices instead of only one. If they are looking for human interactions and require someone to serve them, CeFi is the way to go. And CeFi is the gateway to get into blockchain or cryptocurrency investment. After getting used to CeFi, users will then start to explore around. If one is seeking a higher yield and the freedom to trade (no KYC), DeFi is the best choice as of now. Moreover, DeFi will have a lot of outreach in the future, especially to countries that have yet to be developed.

Moderator: What are the new generation strategies to start DeFi for someone new?

Panelists: Users can start off DeFi by doing research and picking the project they like. Get involved and play around with the DeFi protocol, learn about the base while investing a little bit. Most importantly, do not put everything in the same basket. The intention of using DeFi is to be one of the early adopters, not to get rich in a single day.

Moderator: In terms of regulations, it may be challenging to regulate DeFi. What’s the point of view regarding this?

Panelists: Educate users, enhance functions of crypto wallet, and build infrastructure. In the DeFi space, there is no need for a regulator to provide protection, as it is based on blockchain technology and smart contract protocol. The intention of DeFi is to remove the middleman, and to offer peer-to-peer service. Despite regulations being important to protect users, the basic of crypto is education and knowledge. Scams and rug pulls are also happening in CeFi; regulations do not protect users, but knowledge does.

Moderator: Any last tips or advice to start investing in DeFi?

Panelists: Education, learning mindset, do your own research (DYOR), understand the blockchain technology and protocol, start small, get into the pool, don’t go all in on one, coin and do not invest what you can’t afford to lose.

Reported by: [BlockTwits] Nell