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What is next in the world of DeFi

Wrapup video with exploration of other areas of finance DeFi will likely disrupt
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(soothing music) <v ->After learning so much about the world of DeFi,</v> in this video, Jason and I are going to, we’re going to speculate. We’re going to think about what the future of the DeFi world looks like. So, Jason, I’m going to give you a really open-ended question, what are you most excited by in the future of DeFi? <v ->Yeah thanks Chris.</v> Look what I’m excited by is I love the idea of just DeFi integrating into everything. It’s fundamentally just made of software and software can go anywhere. And that idea that we can have finance made of software integrated in all of the products anywhere, I think is the most exciting application I see.
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<v ->But what does it look like from the perspective</v> of the current financial sector? So is it the case that DeFi is going to displace the financial sector or are they going to take it over? How do you think through the competitive dynamics there? <v ->I think what’s going to happen is we’re just going</v> to see more and more products with finance inside, in the same way that we have this thing where eventually computer chips, the Intel Inside, made its way into all sorts of products that you would never have imagined before. The moment when you want finance, you go to a finance shop, a bank, Goldman Sachs or something like that and you buy a financial product.
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What we’re going to see with DeFi is just more and more things just naturally have finance baked into them. And that’s going to be incredible. <v ->It’s interesting, right?</v> Because DeFi’s not happening just by itself. It’s happening amongst the same sort of technological revolutions in tons of other different fields like AI, like all the other things that Blockchain is doing, like the internet of things, 5G, communication. Do you sort of see, when you say that DeFi will be in everything, does that mean, like my autonomous vehicle will be trading derivatives as we drive down the road? Is that the sort of future that you foresee?
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<v ->I can’t wait for that to be the case.</v> It’ll be paying insurances as it needs if it starts to sense there’s ways in which it can make you safer or find opportunities. It’s going to be this combination of bringing AI automation into DeFi and automation. And this is going to be the best of all possible worlds, I think. This is hugely exciting. <v ->And then finally, Jason, how do you think,</v> through the, sort of, social consequences of this? Obviously the financial sector is just one sector, but it touches every part of the economy. If there’s more DeFi if there’s more access to finance, what does that mean for everybody else?
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<v ->It means many good things.</v> Finance is risk management. This is automation and lowering the cost of risk management, which just means we get more of it. That’s a good thing. And if we can put that into more and more things, we’ll have a situation where a lot more people have access to financial products because it’ll just be naturally baked into the world around. <v ->Thanks, Jason, look, I hope for everybody watching</v> that this course has allowed you the insight, the access and the opportunity to explore DeFi from here on. There’s a lot more to learn and there’s nothing that we could put in a course that will set you up permanently.
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The point now is to play with it, to test it and to explore those really exciting opportunities. So on behalf of FutureLearn and the Blockchain Innovation Hub, thank you for joining us. (soothing music)

So far, we’ve focused mainly on the disruptions that DeFi has already caused in the financial world. But what does the future hold for DeFi? Watch Associate Professor Chris Berg and Professor Jason Potts discuss where DeFi might go next and what excites them about the future of DeFi.

Now it’s your turn

What are you most excited to see in the future of DeFi? Share your thoughts in the comments.

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Decentralised Finance: Blockchain, Ethereum, and The Future of Banking

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