Cyber Capital founder and CIO Justin Bons ignited a fiery debate on Twitter today, claiming that Bitcoin (BTC), XRP, Binance Coin (BNB) and Stellar (XLM) are not true decentralized finance (DeFi) projects.
Bons argued that while BTC has played a crucial role in the rise of cryptocurrencies, it is not capable of handling complex financial products.
Furthermore, he asserted that BNB, XRP and XLM are centralized due to their permissioned blockchain architecture.
In contrast, Bons listed several projects, including Ethereum (ETH), Cardano (ADA) and Polkadot (DOT), which he believes genuinely embody DeFi principles.
Arman ShirinyanThis structure contrasts with permissionless blockchains, where anyone can join the network and participate in its operation without needing authorization.
Bons' tweet sparked a range of reactions from the crypto community. Addressing the Solana (SOL) project in a follow-up tweet, he stated that although it is technically decentralized and permissionless, it has made dangerous trade-offs in security and scalability to achieve those attributes.
Centralized cryptocurrencies can be more susceptible to censorship, manipulation and control by centralized entities, undermining the core principles of decentralization and trustlessness. However, proponents of centralized cryptocurrencies argue that they can offer increased efficiency, regulatory compliance and better governance.
Arman Shirinyan
Vladislav Sopov
Dan Burgin
U.Today Editorial Team