DeFi sacrifices performance for maximum decentralization, limiting trader participation. Minimum viable decentralization (MVD) offers a practical way to balance decentralization with necessary performance, crucial for attracting serious traders.
TradFi’s infrastructure focuses on trader needs, emphasizing speed and reliability. In contrast, DeFi’s obsession with ideology leads to performance limitations, making it less inviting for participants compared to traditional finance.
Emerging chains adopting MVD promise a balance of speed and decentralization, improving user experience. For DeFi to thrive, it must embrace MVD to enhance usability and attract institutional interest, making it competitive with TradFi.
Leave a Reply