Hugo Philion, Co-Founder of Flare, on DeFi Being Worse Than TradFi, Crypto’s Critical Problem, and Solutions for Adoption Issue | Ep. 370

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In an exclusive interview with Cryptonews Podcast, Hugo Philion, a co-founder of blockchain for data Flare and CEO of Flare Labs, discussed building Web2 experiences with Web3 guarantees and why DeFi is currently worse than TradFi.

He talked about the industry iterating itself “into a corner that no one cares about,” projects being too focused on infrastructure, and Trusted Execution Environments (TEEs) as the best route to mass adoption.

While doing research before launching Flare, the team notices a major issue. “People are really happy to launch quick and dirty solutions because it makes them a lot of money,” Philion said.

This is not something serious engineers do, he stressed.

Looking at the models of existing oracles, Philion continued, there are several issues to note.

First, an oracle is an application that is not native to a chain – it’s an external service.

Therefore, there are no clear security guarantees. Nobody guarantees the number of nodes providing a price, for example.

“The situation gets worse when you think between the largest oracle providers, the worst provided price has only five nodes that are contributing to that price,” the CEO warned.

That’s a very small number of people who need to be malicious in order to damage the price.

Thus, Philion argued, “the reality is we’ve built something worse than TradFi. […] And to me, that seems completely berserk.”

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