At a busy marketplace in Nairobi, a local seller skillfully orders her products and inspects her phone. Within seconds, after a few swipes, a payment from someone far away receives clearance, no banks, no holdups, and a fourth of the fee typically charged. All this is possible due to Decentralized Finance (DeFi), a quiet revolution revolutionising financial transactions worldwide. While discussion of DeFi typically centres on the speculative exchange, its real potential involves providing financial freedom for the billions across the globe who are not adequately served by legacy banking infrastructure.
The World Bank reports that more than 1.7 billion adults worldwide cannot access formal financial services. Meanwhile, the remittance market worldwide reached close to $800 billion in 2022, with average fees on transfers standing at about 7%. DeFi applications promise to cut such fees significantly while also unlocking new financial avenues for the unbanked.
“If you believe that Decentralized Finance is all about crypto trading, you’re selling yourself short,” says Chirag Narang, Product Lead at the Uniswap Foundation. “DeFi is creating a world where financial inclusion is not an afterthought but an inevitability.”
One of the key drivers of this change is the advent of Layer-2 solutions, which are specifically aimed at breaking the bottlenecks that have long constrained blockchain scalability and user take-up. A prime example is Unichain, a dedicated Layer-2 blockchain, providing rapid transaction finality and decentralized verification. These technological innovations are not only enhancing performance; they are revolutionizing the way financial services are provided globally.
“Layer-2 solutions are the building blocks for mass adoption of DeFi,” Narang says. “Unless we solve scalability and cost-effectiveness issues, we cannot realize the full potential of DeFi in real-world applications.”
This vision is not limited to technology. DeFi is also addressing regulatory risk and enhanced user experience, both major impediments to mass adoption. In countries around the globe, conversations with regulators are opening the door for regulatory regimes that facilitate innovation while protecting consumers. At the same time, user interfaces are being made more accessible, making DeFi benefits available to regular users without technical knowledge.
One of the most promising frontiers is cross-chain interoperability, which enables frictionless asset transfers between various blockchain ecosystems. Interoperability is vital to creating a truly decentralized global financial system where users are not locked within one ecosystem. Developments in this area are assisting in breaking silos and creating a more integrated financial environment.
The human impact of these innovations is profound. DeFi protocols now enable collateralized and undercollateralized loans for small businesses, decentralized insurance for farmers in developing countries, and real-time remittances for migrant workers. These real-world applications underscore DeFi’s potential to empower individuals and communities.
“The next phase of DeFi is about inclusivity,” Narang says. “Whether it’s providing credit to an entrepreneur in Southeast Asia or reducing remittance fees for a worker in Africa, we’re building a system that works for everyone.”
As the DeFi ecosystem advances, institutions are going into the space, bringing capital and credibility. Their participation contributes to deeper liquidity and greater stability, two critical drivers of long-term sustainability. Additionally, continuous innovations in smart contract auditing and security measures are addressing concerns regarding safety and trust.
Looking ahead, the vision is clear: a future where decentralized financial services are as ubiquitous as mainstream banking but with the benefits of user autonomy and global reach.
“We’re just scratching the surface,” Narang says. “In the next five years, I envision a world where DeFi is an everyday utility, empowering people, transforming industries, and closing financial gaps.”
Through his contributions to the Uniswap Foundation and the development of Unichain, Chirag Narang is leading this shift. By tackling technical and regulatory challenges head-on, he is not only shaping the future of DeFi but also helping to create a fairer financial system for all.
