Opinion by: Doug Colkitt, a founding contributor to Fogo
In the crypto industry, the focus on decentralization often overlooks the needs of merchants. The current ecosystem prioritizes philosophical ideals over practical use cases, hindering serious traders’ involvement and leading DEFI users towards more centralized options. Defi should aim for performance beyond speculation to offer a real alternative to traditional finance. A concept like Minimum Viable Decentralization (MVD) could balance censorship resistance with speed and reliability for market adoption.
Tradfi excels in serving merchants with efficient technical infrastructure for speed and reliability. In contrast, DEFI’s emphasis on decentralization has led to performance limitations, making it unsuitable for high-frequency trading. Issues like block times and MEV compromise user trust and execution quality, deterring serious traders. To compete with Tradfi, Defi must improve infrastructure for high-speed trading, emphasizing performance standards like low latency and availability.
Resistance to censorship and speed can coexist in decentralized systems with the Minimum Viable Decentralization (MVD) concept. By finding a balance between decentralization and performance, protocols can cater to real market needs while upholding key ideals. Manufacturers have the opportunity to create open, fair, and
https://altcoin.observer/crypto-needs-minimum-viable-decentralization/
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