A debate on whether DeFi is decentralized or has not taken over Twitter crypto, as experts come together to give their opinion on the subject
The principle behind DeFi is the abolition of a controlling figure, who directs or influences the movement of money, as is the case with centralized financial institutions, which are the banks.
Recently, members of the crypto community have raised arguments claiming that DeFi can never be truly decentralized.
This argument is based on the proposition that DeFi protocols are not decentralized, since most of them are based on web servers that they [protocolos DeFi] do not control. This is the opinion of Bitcoin defender and Morgan Creek Digital co-founder Anthony Pompliano.
Yesterday he posted a controversial tweet that sparked the whole debate: “Jeff Bezos could turn off most of these Ethereum-based “DeFi” applications simply by turning AWS off. You are not decentralized if you just connect servers with Uncle Jeff! “
While the tweet may be controversial, it is difficult to ignore the truth in it. A ZDNet report earlier this month showed that Jeff Bezos’ Amazon Web Services has the largest share of the cloud services market in the world.
Crypt journalist Camila Russo was one of those who responded to Pompliano’s tweet. She said that while 70% of Ethereum nodes are hosted, not all of them employ the same service. She added that Amazon represents about 37% of hosted nodes. In response, Pompliano posted: “I’m talking about the “DeFi” smart app contracts not being immutable, front ends being centralized, etc.”.
ShapeShift CEO Erik Voorhees added: “Most Bitcoin nodes also run on AWS … Because most servers of all types run on AWS.” A very intense debate followed under Pompliano’s tweet.
One response that stood out was from Compound Finance founder Robert Leshner, who said: “When a #Bitcoin influencer reveals their deep ignorance of how blockchains, smart contracts and the #DeFi stack work, we should educate and welcome them with open arms“.
Elsewhere, the crypto community is still debating whether DeFi, despite this, still represents the future of finance.