Has "Decentralization" become a buzz word these days?

[Abiky]

There has been some "buzz" going around related to "De-Fi" thanks to the negative effects of COVID-19 in the mainstream economy. There are many projects out there which claim to be "decentralized" these days. But deep inside, they're just a "reincarnation" of banks right on the Blockchain subject to single points of failure. For instance, Binance claims that its "Binance Chain" platform is "decentralized" when you and I know that's not the case. The same thing happens with IOTA (centralized coordinator) and Ripple's "XRP Ledger".

If we base ourselves on facts instead of projects' claims, we'll realize that a very small portion of cryptocurrencies provide true decentralization and censorship resistance. But most people don't care about decentralization as long as they're able to make money in crypto land. It's best we call projects such as XRP, TRON, and IOTA as "distributed ledgers" rather than "decentralized Blockchains" due to the way they're designed. As long as the term "decentralized" is just inappropriately, people will believe that their funds are "SAFU" in any type of cryptocurrency or Blockchain network.

Do you think mainstream crypto companies, and startups are making bad use of the term "decentralized"? Are people worldwide being fooled by these same entities? Your input will be greatly appreciated.

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[alani123]

It's true that decentralization and blockchain technology have become buzzwords these days.
People are not realizing that re-imagining bitcoin's trustless decentralized system for something other than transactions of cash isn't going to be nearly as trustless and decentralized.

Many projects have filled these holes with trust based solutions such as permissioned chains, high-trust nodes, setting validators, voting and other ridiculous solutions.
I think most projects that are rising through the De-Fi trend will spend years without having achieved much if anything. Their promises are tied around a speculative token and in reality not much beyond this is thought out.

I do think there's value in building decentralized and autonomous or semi autonomous solutions such as decentralized exchanges and marketplaces. But I don't see much value in tokenizing these systems under a proprietary model and a centrally managed organization. Cryptocurrencies ran like a corporation fail to be decentralized right from their very foundation.

[bgaf]

Do you think mainstream crypto companies, and startups are making bad use of the term "decentralized"? Are people worldwide being fooled by these same entities? Your input will be greatly appreciated.

If they say decentralized then they should not have any authorization over it. Bad example of this is xrp, they trying to incorporate decentralized on their project services but the truth is they are publicly centralized, like xrp ledger. Many project keeps mouthing the term decentralized but they dont actually knew exactly what supposed to be when you are decentralized. Only bitcoin so far proven the decentralized concept without any issue at all.

[Blue_oxen]

It's true that decentralization and blockchain technology have become buzzwords these days.
People are not realizing that re-imagining bitcoin's trustless decentralized system for something other than transactions of cash isn't going to be nearly as trustless and decentralized.

Many projects have filled these holes with trust based solutions such as permissioned chains, high-trust nodes, setting validators, voting and other ridiculous solutions.
I think most projects that are rising through the De-Fi trend will spend years without having achieved much if anything. Their promises are tied around a speculative token and in reality not much beyond this is thought out.

I do think there's value in building decentralized and autonomous or semi autonomous solutions such as decentralized exchanges and marketplaces. But I don't see much value in tokenizing these systems under a proprietary model and a centrally managed organization. Cryptocurrencies ran like a corporation fail to be decentralized right from their very foundation.

I'll be a little bit skeptical about this. As you said, you don't see much value of decentralized in tokenizing those systems. However, DeFi projects are not completely matured yet. It is still growing and developing. As now, it's true to say that we can't see any further advantages of DeFi projects in tokenizing those systems, but we can't say for sure in the future.

[masterrex]

Decentralization is a common language nowadays especially in the crypto industry, and the tool to make decentralization works was already there, but why until now decentralization is not yet fully achieve and just become only an option, I think the main problem is the legality. In some countries, governments, and territories they consider that the decentralization ideas is a treat to their governments and because of that reason decentralization is very hard to implement, I believe that the DeFi's popularity today is just a hype and later on it will be returned to normal.

[Tipstar]

In reality nothing is truly decentralized. Bitcoin which arguably is the most decentralized cryptocurrency by distribution in an upper estimate is owned by just 1% of world population. Every other coins distribution are smaller. If you go to count minders and nodes, that would be tiny as negligible.
The decentralized word most of the newer chain uses means decentralization in the manner of operation. i.e. use and transaction not being controlled by any single entity.

[Pecunia non olet]

Talking about a decentralized ecosystem when the team is managing an ICO is complete nonsense. Plus when you study more about ICO tokenomics, you realize that more than 50% of all issued tokens go to the team. So, how the project could be decentralized?
Decentralized projects are not pre-mined, without any ICO, equally distributed among other users.

[Crypto_lion]

I think that is definitely the case and sometimes it just gets thrown about to all crypto projects in general even though not all are decentralized projects. We need to accept the fact that some businesses need a hybrid model to work with blockchain.

[freigeist]

Name one decentralized project that achieved  something?

All this companies or organisations are centralized.
If you wish to achieve something you need to have a cetnralized entity that
governs and runs the project with clear goals.

Most of this entities are using the word decentralized to sell their centralized product "idea".
Every few year there is a buzzword coming out.

1st was blockchain during the ICO mania - when every company started to make projects
based on blockchain but actually replicating the same existent shit
that already existed on "centralized" technologies
databases and servers to blockchain even if blockchain were useless or not scalable for the user case.

2nd was AI - suddenly all companies went into building some AI smart shit that will save the world
which actually were just simple algorithms based on big data

3rd was DeFi shit which as you Abiky say is replicating the existing rotten
financial system but "without a middleman".
They all speak about decentralization but at same time they require you to submit
your personal info KYC to them because is required by the state which is centralized.

Blockchain was supposed to give people personal sovereignty and to detach us from
false central authorities.
Without a financial freedom there is no personal sovereignty.
Without personal sovereignty there is no freedom.
Freedom is a farce.

[akram143]

The term decentralization is still unknown to lot of people they just go with every projects to invest that is why we can see this terms has been used as lucrative word to attract people but this itself not effective for now to be honest that is why projects keep naming them under different categories like STO,DeFI, stable coins.

[Eddyc]

In fact, in relation to theory, Decentralization should be the starting point of any project or at least make the project as transparent as possible. The idea of blockchain is to revolutionize the financial system and external and personal transactions and that is why there is so much talk about decentralization.

[InwardContour]

Very nice points OP made, many crypto projects use the word decentralized wrongly, since in the real sense most are highly centralized. Ripple EOS, TRON are all core examples as pointed out by OP. It's also questionable whether some so-called decentralized exchanges are truly decentralized, since some use centralized servers for matching orders on order book. Imagine Justin Sun delving into DEFI (Decentralized Finance) whereas the underlying framework itself is far from decentralization. Well, who cares about decentralized projects? Provided money is made, we are cool in the real sense.

[davinchi]

Yeah, there has been a buzz word usage of decentralization by the startup companies that makes me sick to my stomach for a long time now. I mean just because you are using the word doesn't mean that you are using it right. The whole idea was to make something that wouldn't be compromised by a centralized organization like a government to make it look like it is actually controllable.

Why was bitcoin created? Because finance was controlled by politicians who are bribed and paid by the rich people, so what happens in the economy of a nation?

They basically just run the economy helping the rich people with the taxes of the poor people. In order to stop that we created bitcoin and made it something huge because government can't touch it. Do you see decentralization in any other start up that can do something like that? Hell no. They just like to use it to garner attention.

[Baofeng]

Do you think mainstream crypto companies, and startups are making bad use of the term "decentralized"? Are people worldwide being fooled by these same entities? Your input will be greatly appreciated.

At certain point, it seems that crypto buzz word are totally misunderstood and being used by companies as their selling point without really understanding the real meaning behind it. And as you can see in the altcoin market, there are a lot of coins that are really decentralized, and then trying to sell them, but they are a complete opposite. Not only projects but crypto related companies as well, third parties and others that really wanted to join the revolution and be part of it and of course to make money.

[hatshepsut93]

It has been a buzzword ever since the blockchain technology hype has started. Now it's just like "eco" or "bio" or "smart" suffixes that you see in consumer goods - they are there just to trigger instant positive reaction from potential buyers.

But most people don't care about decentralization as long as they're able to make money in crypto land. It's best we call projects such as XRP, TRON, and IOTA as "distributed ledgers" rather than "decentralized Blockchains" due to the way they're designed.

Most of the so-called blockchain enthusiasts come here to make quick profits, but unfortunately for them, they easily believe in such dishonest marketing of altcoins, because they are desperate for reassurance. This is what happens when people get emotional with their investments.

[irixo10]

You have said it the way it is, it is quite easy for most projects to say they are decentralized when it is obvious and perfectly clear they aren't, most times I even wonder if they actually knows the true meaning of decentralization. Although no blockchain can be totally decentralized as Bitcoin blockchain but at least exhibiting a good level of decentralization is a good starting point.
About your question, yes, I think they are making bad use of that term because they tend to use it to fool people while those who knows the truth only gets involved with such projects because of the money they will make, therefore instead of fooling them, they make their money and exit the project.

[VictorProsh]

Name one decentralized project that achieved  something?

All this companies or organisations are centralized.
If you wish to achieve something you need to have a cetnralized entity that
governs and runs the project with clear goals.

Most of this entities are using the word decentralized to sell their centralized product "idea".
Every few year there is a buzzword coming out.

1st was blockchain during the ICO mania - when every company started to make projects
based on blockchain but actually replicating the same existent shit
that already existed on "centralized" technologies
databases and servers to blockchain even if blockchain were useless or not scalable for the user case.

2nd was AI - suddenly all companies went into building some AI smart shit that will save the world
which actually were just simple algorithms based on big data

3rd was DeFi shit which as you Abiky say is replicating the existing rotten
financial system but "without a middleman".
They all speak about decentralization but at same time they require you to submit
your personal info KYC to them because is required by the state which is centralized.

Blockchain was supposed to give people personal sovereignty and to detach us from
false central authorities.
Without a financial freedom there is no personal sovereignty.
Without personal sovereignty there is no freedom.
Freedom is a farce.

You are right for today there is not a single project that could be called completely
Decentralized finance. All financial systems based on Stablecoins based on the dollar exchange rate, with manual control and administration are subject to the risk of loss of financial assets. The main mistake, in my opinion, of all financial systems is that they are built on both of the existing Fiat management policies, which is fundamentally unacceptable for decentralized finance. The future is still in the decentralized finances, and they will manage the existing monetary system, and not for turnover. One of the options for decentralized finance in the project http://prosh.ru/smartcontract.html
 You are absolutely right - Without financial freedom, there is no personal sovereignty.
Without personal sovereignty, there is no freedom.

[Hueristic]

Liquid.

[Abiky]

Very nice points OP made, many crypto projects use the word decentralized wrongly, since in the real sense most are highly centralized. Ripple EOS, TRON are all core examples as pointed out by OP. It's also questionable whether some so-called decentralized exchanges are truly decentralized, since some use centralized servers for matching orders on order book. Imagine Justin Sun delving into DEFI (Decentralized Finance) whereas the underlying framework itself is far from decentralization. Well, who cares about decentralized projects? Provided money is made, we are cool in the real sense.

That's the point. There's so much hype going around with "De-Fi" using the term "decentralization" inappropriately to fool everyday people. The fact that most decentralized exchanges rely on centralized infrastructure, greatly defeats their purpose. A decentralized exchange should be as independent as possible from centralized servers, central operators, and more. Based on my findings, only Block DX achieves this quite nicely. As far as decentralized cryptocurrencies go, Bitcoin, Litecoin, and Dogecoin are the only decentralized cryptocurrencies on the market. Even Ethereum is centralized as transactions were rolled back on-chain due to the events of "The DAO hack" which occurred in 2016. The project is deeply linked with Vitalik Buterin, despite its supporters saying otherwise.

As long as there's money to be made, people won't care about decentralization. From day one, Bitcoin has always been about eliminating third parties (middleman) from the system. It's a decade now since it's inception, and people rely on centralized exchanges and even web wallet providers to conduct all their crypto activities online. If the trend continues, crypto will never be able to exploit its full potential in the mainstream world. It's up to crypto enthusiasts like you and me to support decentralized infrastructure as much as possible. We may not be able to force everyone to use decentralized exchanges and non-custodial wallets for crypto. But as long as there is a small minority of people supporting decentralization, crypto will be able to survive a lifetime. If you truly believe in crypto/Blockchain technology, it's best that you avoid technically-centralized projects like TRON, EOS, and BNB. Otherwise, you'll be making big companies even powerful as the dominate the entire crypto ecosystem like never before. Just my opinion

[funex]

 DeFi is actually the new trending thing in crypto everybody is talking about Defi here and there . Well in my opinion i think the introduction of DeFi is opening  up opportunities in the crypto space and reducing the risk of Centralized finance. Although i hear some people say Defi is another ponzi i am still wondering where  they got the idea from and why they say so .