Cryptocurrency industry players discuss: "Decentralization" may just be an overly packaged myth

The series of issues triggered by the cross-chain bridge project Multichain this year has exposed the centralization of project permissions, with MPC nodes running on the same servers as other ordinary servers and all operating under the personal cloud server account of CEO Zhao Jun, which no team member can access. How many projects in the DeFi protocols actually have a similar level of centralization as Multichain?

Event Recap: Multichain confirms: Founder and sister taken away by public security, operational funds and private keys whereabouts unknown

Most "Decentralized Projects" Are Misleading

The blockchain media BeInCrypto discussed decentralization with project teams and industry participants, revealing that many cryptocurrency projects are packaged as pseudo-decentralized through technologies like multi-signature wallets. The decentralization most users care about is limited to asset ownership and resistance to regulation.

Caspar Sauter, co-founder of the sustainable contract protocol D8X, stated:

Many so-called "decentralized" projects possess "smart contract wallet accounts" controlled either by external owners or multi-signature wallets controlled by core teams. Typically, these wallet holders are granted extensive permissions, essentially making them a centralized participant in control of everything. Identifying whether a project is truly decentralized requires time and expertise.

Sauter believes that truly decentralized DeFi protocols do exist but are often complex in engineering.

Konstantin Boyko-Romanovsky, CEO of node operator Allnodes, added:

Achieving true decentralization is a key goal but difficult to attain. For certain public chains, arguments can be made on both sides regarding whether the decentralization standard has been met. While decentralization is an ongoing goal, compromises may be necessary when considering real-world usability and efficiency.

Users Are Not Too Concerned About Decentralization

Richard Meissner, co-founder of multi-signature wallet Gnosis Safe, expressed that not everything is as dire as it seems. Describing the decentralization issue as a "Myth" may be exaggerated, as while fully trustless decentralization has yet to be achieved, significant progress has been made in recent years.

Regarding the current projects' centralization mechanisms, he highlighted centralized server hosting, centralized domains, and even governance processes that may have centralized security mechanisms to comply with regulatory requirements.

In conclusion, he stated:

Users should not feel whether a service is decentralized or not, much like how they do not delve into the type of database behind service providers. Users care about the advantages of decentralization, such as asset ownership, censorship resistance, and permissionless access. If another technology can offer the same benefits and provide a better user experience, users may accept it even if it is not decentralized.