Cryptocurrencies like Bitcoin (BTC 1.39%) and Ethereum (ETH 1.22%) have risen dramatically in price and have received a ton of attention over the past couple years. But the real game changer could be the underlying blockchain technology. In this Fool Live video clip, recorded on March 18, Gemini cryptocurrency exchange co-founder Cameron Winklevoss explains to The Motley Fool's Anand Chokkavelu why decentralized finance is such an important innovation.

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Anand Chokkavelu: What's something in the blockchain/crypto universe most people today can't envision at all, but will take for granted five years from now?

Cameron Winklevoss: I think one of the most interesting developments has been decentralized finance. That's really had a boon over the past year, where people are building projects that are permissionless, where you can lend and borrow funds. You can trade. You can just show up to these smart contracts and send your collateral in and transact, you don't actually need permission to do that.

It's really rearchitecting big pieces of the financial system in a decentralized, permissionless manner, which is super exciting, and it's all being built on Ethereum. I think the next question a lot of people would have would be, "How do I invest in this wave?" The simplest answer is that you could invest in projects directly, but then you have to pick winners, so to speak.

If you think of Ethereum as basically this decentralized computer, and Ethereum is like Manhattan, and buying ether is like buying a parcel of land, and these projects are like skyscrapers. By owning the land as people build on top of it, build these skyscrapers, that brings value to you as a property holder. Really the weighted index DeFi, which I think is one of the most important frontiers being built in crypto today. You can simply buy Ethereum, and then you have a pro rata share of this piece of land that all this good stuff being built on top of it.

A lot of that value accrues to ether holders, because these projects require you to use ether to use them. So they are ether eaters, and they create demand. What we've been telling folks, and again, this is not financial advice, just want to say that. A lot of folks approach us and they say, "Hey, how should I enter crypto?" Our view is Bitcoin's the entry point, it's the store of value, it's the oldest, it's the most liquid, it has the largest market cap.

We've been in it personally for almost nine years now. Bitcoin's really the starting point, but Ethereum is a place where it makes a lot of sense to have chips on the board. Whether that's a 70-30 breakdown between Bitcoin or Ethereum, or 60-40, 50-50, that's a personal decision. I think that's what we've been discussing with folks who ask us, how do I approach this space? Because Ethereum indexes so much of this amazing activity that's going on, and then Bitcoin is that digital gold. I think if you look at the performance, Bitcoin's done incredibly well, and Ethereum's done well, too. I think individuals are well served to look at both of those projects.