DeFi Adoption in Emerging Markets: User Experience Hurdles and Solutions

The mainstream adoption of decentralized finance (DeFi) in emerging markets like India is being hindered by a fragmented user experience, according to Rohit Jain, CEO of Okto wallet. Speaking in an interview with Benzinga, Jain identified the complexity of Web3 interactions as a primary barrier, alongside the need for regulatory clarity, as key challenges preventing DeFi from reaching a broader audience. His insights highlight the industry's struggle to simplify access while maintaining its decentralized ethos.

Jain pinpointed the convoluted nature of DeFi processes as a significant obstacle. "The experience layer in Web3 is completely broken," he said, elaborating that "simple transactions become very archaic and very complicated for users." He noted that users must navigate multiple wallets, seed phrases, asset bridging, gas tokens, and chain-specific nuances—tasks that also burden developers. This complexity, he argued, alienates both new users and institutional players in markets like India, where streamlined access could unlock significant potential.

Despite these hurdles, Jain sees a path forward through technological innovation, citing the growing "chain abstraction" movement aimed at simplifying Web3 interactions. He also emphasized the global momentum toward regulatory clarity as a catalyst for adoption. "Globally, I do think, increasingly, we are moving towards more regulatory clarity in general, not only in India, but globally speaking," he observed, suggesting that clearer frameworks could draw institutional participation once user experience issues are resolved.

Jain's optimism about regulatory progress extends to India, where he believes that an understanding of blockchain technology is improving among regulators. "Regulators globally and in India are understanding Web3 and blockchain as a technology," he said, predicting that this shift will eventually lead to frameworks that balance innovation and consumer protection. He views cross-country regulatory alignment—spurred by developments like Europe's MiCA and U.S. clarity—as inevitable, though the timeline remains uncertain.

While Jain acknowledged the post-FTX debate over self-custody versus centralized platforms, he advocated for a hybrid future where both coexist, tailored to user preferences. His focus on improving DeFi's accessibility reflects a broader industry push to bridge the gap between Web3's promise and its practical adoption in emerging markets.




In conclusion, the mainstream adoption of DeFi in emerging markets like India faces user experience hurdles, particularly in the complexity of Web3 interactions. Technological innovations like chain abstraction, along with regulatory clarity and improved accessibility, can significantly impact the growth of the DeFi industry in emerging markets. These innovations can help address the user experience hurdles in DeFi adoption, making it more appealing to both new users and institutional players, and driving industry growth.