David Hoffman: Ethereum Is the Frontier of Financial Innovation

This makes sense because innovation in one sector ultimately makes innovation in other sectors cheaper.

As innovation becomes cheaper, we can naturally expect it to increase in usage.

It's not obvious that removing these obstacles would enable the level of innovation seen in industries that have successfully integrated chips and software.

The reason why innovation in the finance industry seems to move at a snail's pace is the lack of a developer sandbox for experimentation.

As research and development in finance moves into the developers' domain, the costs of innovation drops, leading to an innovation explosion.

This is what Ethereum offers to the world: A place for financial experimentation to mature into consumer products.

DeFi, or decentralized finance, is both the place where financial products are tested, and also refined, finalized and shipped to the 4.5 billion users available on the internet.

Innovation occurs when the costs of iteration and experimentation reduce.

It also increases the attractiveness of Ethereum as a financial platform for the end user, who may come to understand Ethereum as the frontier of financial innovation.

There is no shortage of opportunity that DeFi offers to developers who want to tinker with financial toys that come with an opportunity to be refined into a consumer product.