Crypto needs minimum viable decentralization to guide performance-focused infrastructure
The crypto industry often prioritizes its philosophical principles over practical use cases, which restricts serious traders and drives users towards centralized finance (TradFi). To scale beyond speculation and offer a viable alternative to TradFi, decentralized finance (DeFi) must focus on performance, introduced through the concept of minimum viable decentralization (MVD). MVD proposes that protocols can maintain necessary decentralization while optimizing for speed, reliability, and usability. TradFi's evolution into a rapid, high-frequency trading environment contrasts with DeFi's ideological commitment to decentralization, which has introduced performance limitations like slow block times and unpredictable transactions. To attract traders, particularly institutional and high-frequency ones, DeFi's infrastructure needs to meet stringent technical standards, ensuring swift execution and reliability. As decentralized perpetual markets grow rapidly, embracing MVD could help bridge the gap between decentralization and the performance demands of modern trading, ensuring user trust and establishing DeFi as a competitive force in the global financial ecosystem.
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