Decentralization maximalism refers to the belief that decentralization is the best approach and lifestyle to such a degree that any form of regulation does not need to exist.
What Is Decentralization Maximalism?
In the realm of decentralized finance (DeFi), blockchain and crypto, maximalism tends to have negative connotations, taking a similar mentality to a higher level of extremes. Maximalists tend to believe their concept, construct and technology are superior to such a level that others are inferior and not required at all (one common example would be Bitcoin or Ethereum maximalists, who believe that the respective blockchains and cryptocurrencies are the only digital asset that will be needed in future, with others being redundant).
While these are true to some extent, decentralization maximalism ignores the cons of decentralization, namely a clear separation of responsibilities, lack of unified vision, inefficiency, and in extreme circumstances, anarchy and chaos from the lack of regulation and governing authorities.
Ultimately, It is the embracing of an ideal that can only exist in theory, as the reality is that some form of governance and regulation is needed to provide some form of safety, security, or deterrence for the malicious behavior stemming from the anonymity that blockchain and DeFi provides.
Author: Marco De Rossi, President & Cofounder
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