Decentralized Finance Will Reshape The Internet, Crypto Founder Says

The relationship between decentralized finance and the broader vision of Web3 is rapidly evolving, according to Sergej Kunz, founder of 1inch Network.

In an interview with Benzinga, Kunz said that DeFi’s core functions are actually defining much of Web3 and envisions opportunities for mutual growth beyond traditional financial applications, particularly in areas like content monetization.

Kunz also sought to highlight the critical role DeFi plays in the realization of a fully functional Web3.

When asked about the relationship between the two, Kunz said, “Most of the Web3 is defined, it is decentralized finance.”

He expanded on this, highlighting the potential for DeFi’s capabilities to extend beyond traditional finance, noting that “It destroys finance, our money markets, swaps, limiters, whatever. A little bit of games we have, we have payment channels as well. It's also about payment.”

Kunz pointed out that the micropayment capabilities inherent in some Web3 technologies have the potential to revolutionize content monetization on existing web platforms.

He described a scenario where “you are a content producer, you are an influencer and you start a live stream… you could theoretically earn one or two million in just one hour because you have enough people who are paying with micro-payments.”

He said that “Everyone pay a little bit, you know, and you get it because someone watches you.”

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Kunz argued that such a system could rectify current inequities where “influencers are on live stream, people are watching and going away,” and create a more equitable system where “people get the right amount of money for their work.”

Beyond content monetization, Kunz also envisions a future where non-custodial solutions, already central to DeFi, become standard for broader financial accessibility, stating, “You go to App Store, you download the crypto wallet and you have your bank account in your pocket without interacting with people who make failures and are sometimes greedy and gambling with your funds.”

He believes this will lead to widespread adoption, driven by the empowerment and security it offers users.

“You have your bank account in your pocket, you have easy simple access to financial products… And if it’s simple and intuitive, with nice user experience, then I think you will see a hype of, okay, I need my crypto wallet, because I have ownership about my funds,” he said.

Kunz believes this convergence will shift the power dynamic in digital finance.

“This would be the trend, you know, what will come," he stated. "I’m pretty sure in the next five years… people will understand that the crypto wallet is your bank account in your pocket, and it’s easy to use.”

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