We need to talk. Really talk. On the elephant in the DeFi room – the one sculpted from worthless tokens and defunct protocols. We’re inundated with innovation, but parched for real solutions. It’s time for a reality check, a DeFi detox as it were. I'm Rajiv, and I've spent enough time knee-deep in smart contracts to know the difference between a revolutionary idea and a solution desperately seeking a problem. And quite frankly, too many DeFi projects are squarely in that latter category.

Innovation Theater Or Real User Needs

Think about it. Ever wonder why so many DeFi projects start off with a big idea? Unfortunately, most of them end up wasting away after a few short weeks, creating frustrated users and valueless tokens in the process. The issue here isn’t the technical ability. We’ve got some really smart people constructing systems that are wildly complicated. The trouble isn’t their implementation — it’s a more basic mismatch between what we’re building and what people really want.

It reminds me of my DJing days. With it, you can produce the dopest tracks and the freshest new sound. If the dance floor is empty, who cares? It's just noise. Creating a DeFi protocol without a clear understanding of your target users would be just as foolish. That’s like bringing an experimental jazz band to a hip-hop club – sure it’s impressive, but totally useless in the end.

Authologic, a digital identity verification platform, understands this. They’re not selling a product, they’re laser-focused on solving a specific problem. Their motto— as co-founder Jarek Sygitowicz puts it— is that your startup should “stop selling and start listening.” That's gold right there.

We're so caught up in the idea of decentralization, the promise of disrupting traditional finance, that we forget to ask the most basic question: Who actually needs this, and why?

Stop Copying, Start Creating Value

The DeFi ecosystem is infested with clone scams. Someone launches a successful lending protocol, and suddenly, there are ten more, all offering slightly different variations on the same theme. It’s as if everyone is just attempting to remix the same top 40 hit, waiting for their own shot at lighting in a bottle.

True innovation isn't about imitation. It’s not just about the technology, it’s about pinpointing unmet needs and crafting innovative solutions. It’s about cutting through the noise and saying, “What issues are we not tackling?”

We can’t continue to run after short-term fads, we have to begin creating long-term, diverse ecosystems. In practical terms, that means prioritizing utility, accessibility, and long-term value creation. To realize the promise of DeFi, we have to build it for all, not just the crypto insiders.

As Authologic recently described, the digital identity space is a confusing, fragmented, chaotic mess. A "one-size-fits-all" approach simply won't cut it. That’s why they’re laser-focused on developing modular, scalable, and adaptable solutions to address the unique offerings and needs of their clients. Thinking like this is exactly what DeFi needs more of.

Is the market ready now or later?

I understand the excitement. The potential of DeFi is undeniable. We need to balance that promising enthusiasm with a strong sense of realism. Building a DeFi project that truly succeeds and adds value is more complex than just writing compelling code. You need to understand human behavior, deal with daunting regulations, and build public trust.

If you can't answer these questions with confidence, you're probably building something no one needs.

  • Is this problem created by recent technological change? Are you solving a problem that actually exists today?
  • Who has this problem, and what do they do to solve it right now? Are you offering a genuine improvement over existing solutions?
  • How urgently do they need a solution? Is your solution a "nice-to-have" or a "must-have"?
  • How are they coping currently? What are the pain points of existing solutions?

The UK startups ecosystem strongly values trust and credibility. Now more than ever, people are looking for proof that you really feel like the king of the market. They want your honest opinions and experience to deliver the best outcome. The YC support goes a long way for Authologic, but that’s not the whole story.

So get rid of the buzzword bingo, double down on the effort and let’s begin developing DeFi that is truly meeting needs. Let’s solve the avoidable crisis by making a commitment to stop building products nobody needs and start responding to the market. The future of DeFi depends on it. So let’s stop drowning things out with the clamor and cacophony and instead tune into the beat that can break through. And just you wait—the dance floor will be full when we do.

So, let's ditch the hype, embrace the hard work, and start building DeFi that actually solves problems. Let's stop building products no one needs and start listening to the market. The future of DeFi depends on it. It's time to turn down the noise and find the rhythm that truly resonates. And trust me, the dance floor will be packed when we do.