Crypto Needs Minimum Viable Decentralization
The crypto industry has prioritized decentralization over practical use cases, limiting serious traders' participation and driving users to centralized finance. Minimum viable decentralization (MVD) offers a solution to balance censorship resistance with the performance needed for real markets. Traditional finance (TradFi) has evolved to prioritize speed, reliability, and execution, while decentralized finance (DeFi) struggles with performance issues like slow block times and transaction unpredictability. High-frequency traders require infrastructure that supports sub-100ms block times and high uptime. MVD allows for maintaining essential decentralization while optimizing for performance, enabling DeFi to compete with TradFi. As DeFi evolves, particularly in derivatives, it must embrace MVD to meet the growing demand for speed and trust among users.
