Newconomics 2023 - Meet our Speakers: Alex Ray

Are you coming to Newconomics? The event will have Web3 experts from around the world deliver talks, join discussion panels and network on topics like future economics and work. Alex Ray, a speaker at Newconomics, shared his thoughts on a decentralised world and what DeFi needs to succeed.

The Vital Role of KYC in Mainstreaming DeFi

“For me, Web3 is a new technological era where applications are decentralised and designed on the principles of censorship-resistance, transparency, anonymity, and disintermediation. It provides real opportunities to make change for the better, including the provision of services for the unbanked or underbanked in developing countries. It builds trust and transparency in areas including supply chain management, especially in areas where greenwashing takes place like food and apparel. 

There are still challenges in getting everyone up to speed with Web3 technology, such as digital illiteracy and insufficient safeguards. However, there are numerous opportunities, especially in employment. Education and training can be managed on-chain, and payments can be made instantly for work done anywhere in the world. What excites me about the future of Web3 is the ongoing shift towards a decentralised world where we can work from any location for any company.

However, for DeFi to achieve mainstream adoption and attract a broader user base, integrating Know-Your-Customer (KYC) processes becomes crucial. By implementing KYC, DeFi platforms can not only ensure compliance with international regulatory standards, but also add a layer of trust and legitimacy in the eyes of potential users. Potential users might be cautious of the anonymity and risks associated with decentralised platforms.

As DeFi continues to grow, the implementation of security practices becomes critically important. The DeFi space has witnessed several major security breaches and exploits, leading to significant financial losses. By adopting advanced security measures and ensuring continuous audits of smart contracts, DeFi platforms can safeguard users' assets, enhance their reputation, and provide a more stable and reliable ecosystem. In the future, these enhancements in KYC and security could play a crucial role in shaping the economics of DeFi, driving innovation, and facilitating wider adoption. A trusted and secure DeFi environment not only attracts more users but also encourages the development of new financial products and services, contributing to a more inclusive and efficient financial system.”

Find out more about the new economics of Web3 and how it can change the way we work together at the Newconomics event in Lisbon. Full details and registration can be found on the website.