Arthur Breitman, co-founder of Tezos (XTZ), a layer one blockchain protocol, spoke with Cointelegraph’s Jackson DuMont at the Paris Blockchain Week Summit (PBWS) last week about what it would take to realize the true potential of decentralized finance, or DeFi. Breitman delivered a keynote address following this interview on the company’s strategy.
According to Breitman, “people have not really taken advantage DeFi for the assets of the real world that tokenizan”. When he says the real world assets, it refers to stocks, real estate, digital art or “anything you can think of.” Although he advocates a merger of traditional financial securitization and DeFi applications, Breitman also believes that the financialization of non-fungible tokens (NFTs) “is going to be a big thing.”
He added that due to the considerable hype surrounding DeFi and NFTs at the moment, it is difficult to determine what will actually be sustainable. The hype must settle before the true power of DeFi can be realized, because “the goal of DeFi cannot be just to trade DeFi tokens,” he said.
Furthermore, Breitman stated that the consolidation of layer 1 technologies is coming: “There is a gigantic untapped universe out there and they all have a lot of room to grow. We are going to see a lot of convergence in the design of blockchain networks.”
When asked about the trilemma of scalability, decentralization, and security, Breitman is sure it can be solved. He stated that Tezos’ approach to scalability involves Optimistic Rollups, a layer 2 solution that supports very high-performance use cases. Breitman said that Optimistic Rollups may offer the key to both horizontal and vertical scalability of blockchain networks.
At the end, Breitman pointed out to viewers who were interested in learning more about Tezos’ 2022 roadmap scaling efforts. He also expressed his enthusiasm for the gaming sector and Tezos’s blockchain earning initiatives.
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