Aave Labs VP: DeFi will become the hidden layer of the financial system, and the demand for cross-chain interoperability exists in both real assets and encryption

At the roundtable session of "World on Chain: The Importance of Interoperability" at the 2024 Hong Kong SmartCon conference hosted by Chainlink, Emilio Frangella, VP of Aave Labs, said: "In the long run, the concept of DeFi will gradually disappear. It will become a hidden layer of finance. Users will not have the perception of using blockchain technology or DeFi, just like using traditional financial products today. This trend has begun to manifest. The issuance of Bitcoin packaged assets by large crypto institutions such as Coinbase is a major example. In addition, the demand for cross-chain interoperability in the crypto field is exploding, mainly related to the basic needs of users, such as the need to use public chains without permission, and other asset processing needs of traditional institutions such as banks, including some users building private blockchain networks while hoping to retain the functional requirements of synchronizing asset records to public chains. These are all scenarios where the demand for multi-chain and cross-chain interoperability appears. It can be said that the demand for cross-chain interoperability exists not only in the asset on-chain link of real-world assets or investment institutions, but also in the field of cryptocurrency with diverse ecology. In this regard, the advantages of blockchain networks are obvious - tokenization, permissionlessness and inclusiveness."