Many projects in the hype-fuelled sector of decentralized finance (DeFi) are indeed pursuing noble goals, but the problem is that their founders cannot offer true decentralisation. This is the view of Ricardo ‘Fluffypony’ Späni, a Monero maintainer and co‑founder of the Tari project.
“I believe that many of those people who come into the DeFi sector have the best intentions. They want to build something interesting, useful and decentralised,” said Ricardo Späni in an interview with ForkLog.
However, even the best intentions, he says, are dashed by the harsh reality: the impossibility of achieving true decentralisation.
“Many of these people are used to doing everything centrally, whether it’s a website or an app. Creating a decentralised system is exceptionally difficult, but we keep seeing them follow the same pattern, trying to decentralise individual components or viewing the whole system as if it were centralised.”
As one example, Ricardo Späni cited the project YAM, which, a day after launch, ceased operations due to a vulnerability found in the protocol’s governance. The token price, meanwhile plunged by 99% within 24 hours.
“Destroying administrator keys is, of course, a step in the right direction, but the reality is that there remains a single source of truth: the development team. As seen in the YAM example, they are not yet ready for the launch of version 2 of the project, because to do this in a decentralised manner is simply impossible,” he said.
According to Späni, many existing DeFi projects are a “theatre of decentralisation,” because nothing decentralised has occurred.
Earlier, the founder of the blockchain community Encode Club, Damir Bandalo, stated that the current assessment of the amount of funds blocked in DeFi services is incorrect. According to him, the true volume is $3.5 billion, not $6 billion, as DeFi Pulse shows.
The full interview with Ricardo Späni will be published soon on ForkLog.
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