Most DeFi protocols cannot compete with Bitcoin as an efficient monetary network due to insufficient decentralization, according to former Blockstream chief strategy officer Samson Mow.
According to him, DeFi project teams have the right to adjust the protocol at any time.
“Money at a fundamental level must be immutable. If you can make changes at will, then it’s no better than fiat currency controlled by a central bank,” Mow explained.
The decentralized nature of Bitcoin does not allow easy protocol changes, making the leading cryptocurrency the best candidate for a global monetary system, the expert argues.
He noted that despite the unchanging foundation of digital gold, developers of dapps can use layer-two scaling solutions.
Mow is a vocal advocate of the Bitcoin Lightning Network (LN). The technology enables fast and inexpensive transactions.
“Lightning will displace Visa, Mastercard and the rest. And that will lower costs for merchants, meaning better service and savings for consumers,” Mow says.
In November 2021, he said that LN “allows Bitcoin to become a decentralized means of exchange on a planetary scale”.
Earlier in April, the Mow-founded startup JAN3 raised $21 million at a $100 million valuation.