Tezos co-founder Arthur Breitman discusses the untapped potential of DeFi

Arthur Bre­it­man, the co-founder of layer‑1 pro­to­col Tezos (XTZ), spoke with Coin­telegraph’s Jack­son DuMont at the Paris Blockchain Week Sum­mit (PBWS) last week about what it would take to unlock the true poten­tial of decen­tral­ized finance, or DeFi. Bre­it­man deliv­ered a keynote speech fol­low­ing this inter­view about the com­pa­ny’s strategy.

Relat­ed: Paris Blockchain Week, April 14: Lat­est updates from the Coin­tele­graph team on the ground

Accord­ing to Bre­it­man, “peo­ple haven’t real­ly tapped into DeFi for real-world assets being tok­enized.” When he says real-world assets, he means stocks, real estate, dig­i­tal art or “any­thing you can think of.” While call­ing for a merge of tra­di­tion­al finan­cial secu­ri­ti­za­tion and DeFi appli­ca­tions, Bre­it­man also believes that the finan­cial­iza­tion of non­fun­gi­ble tokens (NFTs) “is going to be a big thing.” 

He added that due to the con­sid­er­able hype around DeFi and NFTs at the moment, it’s hard to deter­mine what will actu­al­ly be sus­tain­able. The hype needs to set­tle before DeFi’s true pow­er can be unlocked because “The point of DeFi can­not just be to trade DeFi tokens,” he said.

Addi­tion­al­ly, Bre­it­man affirmed that the con­sol­i­da­tion of layer‑1 tech­nolo­gies is com­ing: “There’s a gigan­tic untapped uni­verse out there and every­one has a lot of room to grow. We are going to see a lot of con­ver­gence in the design of blockchains.” 

When asked about the scal­a­bil­i­ty, decen­tral­iza­tion and secu­ri­ty trilem­ma, Bre­it­man is sure it can be solved. He stat­ed that Tezos’ approach to scal­ing involves Opti­mistic Rollups, a layer‑2 solu­tion that sup­ports very high-through­put use cas­es. Bre­it­man said that Opti­mistic Rollups may offer the key to both the hor­i­zon­tal and the ver­ti­cal scal­a­bil­i­ty of blockchain networks.

Relat­ed: Algo­rand founder Sil­vio Micali wants to ush­er in the democ­ra­ti­za­tion of finance

At the end, Bre­it­man point­ed view­ers who are inter­est­ed in learn­ing more about Tezos’ scal­ing efforts to its 2022 roadmap. He also expressed his excite­ment for the gam­ing sec­tor and Tezos’ blockchain gain­ing initiatives.