Is DeFi a Decentralized Financial Platform?
🔗DeFi is supposed to be Decentralized. This is the case for blockchains and the applications they support. It is designed to run autonomously, to the extent that the outcomes cannot be altered, even if erroneous. Some DeFi platforms are more decentralized compared to others, and some are decentralized differently.
📱When a platform claims to be DeFi, this should mean that it isn’t under the control of any single party or entity and operates as a function of a large and dispersed number of individuals.
👨💼However, ‘decentralization’ can mean various things in crypto, and DeFi is no exception in this regard.
📍In the case of DeFi, decentralization refers to the software which runs on the blockchain network.
📍In the language of the crypto industry, they are trustless, permissionless, and non-custodial because this allows interaction on the blockchain financial mechanisms and functions that transform them.
📍In some areas of crypto, decentralization in DeFi appears from the governance of a protocol and the changes that occur to those protocols. The instruments by which they decentralize are to share governance tokens that function somewhat like share votes or board seats.
🚀 CoinSwap Space is a decentralized exchange that provides users with a suite of services to help them maximize their returns in the DeFi space.
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