Topic: De-Fi apps are NOT 100% decentralized (Read 343 times)

Completely agree with you, mate. People will never understand what "De-Fi" is really all about. All they care is to fill their pockets with money, even if they have to face the risks of centralization. Businesses and companies know this, which is why they focus more on convenience rather than making their platforms truly censorship-resistant. Ultimately, tech-savvy people and libertarians will focus on decentralization above anything else. While it's still possible to interact with "De-Fi" smart contracts directly from the Blockchain, it takes some technical knowledge to get ahold of. "De-Fi" apps need some sort of user-friendly interface where people can interact with them without any prior technical experience. And sadly, the only way to do this is via a centrally-hosted website.

In the bright side, there are many projects working on a truly decentralized web. We have IPFS, ZeroNet, and even the SAFE Network which aim to bring censorship resistance to the Internet. Hosting "De-Fi" apps there would truly make them unstoppable. There are many ways to achieve full-fledged decentralization limited to developers' own imagination. As long as the entire crypto/Blockchain industry remains decentralized, there should be nothing to worry about. Over time, centralized "De-Fi" platforms will fail as people recognize their inherent risks. Decentralized solutions will ultimately prevail once the hype phase is over in the not-so-distant future. Just my opinion

Developers should be able to check the github of the Defi projects to see whether its safe to use or not.  Cant say if they are 100% decentralize but I would like to beleive its the most decentralize so far after all what is needed to run it are the protocols under the blockchain.

We don't even need a website nor dokain server to run these Defi protocols and as long as its opensource and the project doesn't have any bug/loopholes, it must be decentralized.

The developers will find a way how to get a hold of their project in any way they can. I really don't think that we will see full blown decentralized platform in these DeFi projects. Some of them may contain backdoors that a regular user can't see but those that are blockchain experts can uncover those loopholes. But it will take time before someone can do those expose. And most of the time these projects already screwed thousands to millions of dollars before someone can reveal their true nature.

You are right and very on point but do you think there is something like decentralization in this crypto ecosystem? Personally, I don't really see the entire crypto space as decentralized. In as much that the main idea of cryptocurrency is decentralization, Cryptocurrency and blockchain is not decentralized.  We use centralized exchange platforms to trade cryptocurrencies and these platforms decide the amount of coins you can withdraw within 24 hours.

Most of the people who have a capitalist mindset are usually very closed minded about anything detail. They think of money ahead of and above all else, the most important thing in life is profit. I really like this kind of opinion, because with this we can know more about something that an entity can hide from us as users. Indeed, this is not completely decentralized, because the developer still interferes with the policy steering. Every decision made by a developer can be beneficial for some parties and detrimental to others. Of course, the worst thing that can arise with this authority is that an ecosystem that is unnatural and unhealthy can occur.

The role of the developer at this time seems very central, whereas this is very contrary to the principles of decentralization

I have the same opinion as you.  As of investors, they care less on the features of the projects.  All they have in mind is to gain profit and that is all.  Would you believe that these investor will use the project apps?  I bet no, or maybe just once.

Tons of scammers has seen that DeFi projects are getting funding and they unfortunately focus on the part where they are getting funded and not from the decentralization part, nor even the whitepaper part, they do not care what a defi is, they do not care what they could do with it, they just want to create something, get money for it and leave it to people to use it while they go spend that money on their own lives and not to betterment of the coin.

I have seen a ton of people like that, unfortunately they say they created the coin and they sold the coin and their job is done, it is a sad fact but there are people who are like that, they only care about their own money and they do not care about the community that is supporting the coin they created which is why they are called scammers even though it is technically not illegal.

This was exactly the same 2 and 3 years ago when people were talking about decentralized exchanges and making it seem like such an amazing concept when all they were talking about was simply non-custodial wallets. I think people will never truly understand what makes Bitcoin so special and what makes Defi projects in general crap.

The web server maybe centralized indeed, but the defi platform itself should using decentralized platform like blockchain for their infrastructure.
It is not 100% decentralized because to using decentralized web server, you will need using blockchain that can make web server like Arweave or Keva and need some advance knowledge to coding it.

To be honest i have not personally used any defi app as of yet other than uniswap and as far as uniswap is concerned i think it is completely decentralized because there is no third party interference as we have to complete the transaction via our own wallet with the help of metamask.

There is a rapid increase of these DeFi apps/projects and many of them I believe are not fully decentralized, even DEX is not fully decentralized they just called it decentralized and claimed it even if they are not to make it sounds better. People now if they heard about defi with high yield returns they don't care about decentralization they just jump into it for a quick buck. I guess defi is overhyped.
I think so, but it's the best tech we have for now, I just gonna watch how this technology evolve and I hope this will be useful for everyone.

So truthful mate, Decentralized is just on empty words, I haven't seen a real project that's 100% decentralized like Bitcoin, maybe the reason why things are like this is because Bitcoin creator is unknown and nowhere to be found till date and for most new dex projects are still controlled by teams

I would say that like with every new technology or innovative service defi is also just booming now but to become better in all aspects it will require time and infrastructure so over time we will see all the improvements and adjustments.

Completely agree with you, mate. There's been a lot of misconception regarding the term "decentralization" in the crypto/Blockchain space. Most people don't care about this since they're only focused on making money in the least time possible with "De-Fi" apps. In the long run, they'll experience the risks of centralization which crypto was meant to avoid in the first place. A truly decentralized "De-Fi" app would serve its purpose well in being censorship-resistant, outside the control or manipulation of third parties. With a centrally-hosted "De-Fi" ecosystem, the industry becomes no different than regular banking. Consider so called "decentralized exchanges" hosted on centralized servers, asking for KYC from their users. The term "decentralization" has been wrongly used for companies' own benefit.

Ultimately, the hype will lead towards many undesired situations that will make people think twice before choosing "De-Fi" over traditional banking. Just like it happened with ICOs some time ago, "De-Fi" will turn out to become a "failed experiment" in the long run. If it succeeds, only truly decentralized "De-Fi" apps will be able to survive for as long as crypto/Blockchain exists in the mainstream world. Let's hope developers put decentralization first above convenience so that "De-Fi" becomes a household name in the crypto/Blockchain industry. Just my opinion

If there is anything that DeFi-scam is capable of and suitable for, it is only to give hope of making a profit "here and now". As an example-buy some of YFI in the evening for 30L, and in the morning sell for 37k and never touch it again. As with any other DeFi project.
It will be interesting to see a thousand and one posts later that " Oh no [DeFi project] turned out to be a bubble/scammers what to do??? Beware!!!" and others.
When you are a beginner, you are in the maximum risk zone.

I don't think we are ever getting to a completely decentralized "app". Decentralized , sound money is probably the only use case of truly permissionless blockchain. Whenever we put a cap on the capability of a technology, there are a bunch of people who want to quote Bill gates about how "64 KB would be enough memory" (paraphrasing). Yet, people have been trying to prove it otherwise for years now. The best solution they come up with some form of DPoS oligarchy.
The whole proposition that developers want to build things in such a way that their data is immutable is just not good enough. Nobody wants their applications to run that way. The users as well as developers are mighty happy with centralized databases. DeFi isn't decentralized. It is only a new type of banker trick to get rich quick.
 
This shit is too widespread and is far too along for anything to make a difference now. The maximum that will happen is some sort of bug again resulting in people losing money or a clever hack siphoning funds. Yet, that hasn't stopped anybody.
To take an analogy from the existing system, investment bankers have been making crazy money like YFI or erstwhile ICOs for ages now. Its just that they aren't called out for it as only a select few have access to it. DeFi is just spreading it out in such a way that anyone with enough smarts and enough desire can earn that money now. This was the same with ICOs. If you were quick enough to get onto the bandwagon of the initial ones, one would have made money. DeFi just created a niche that arbitrage traders running trading bots are ideally placed to exploit. For good or bad, they are fast becoming crypto's investment bankers. Ideals notwithstanding, I think for the time being, that is the crazy reality of this shit.

Have you heard about this project?
https://web3.foundation/about/
"About
Our mission is to nurture cutting-edge applications for decentralized web software protocols.
Our passion is delivering Web 3.0, a decentralized and fair internet where users control their own data, identity and destiny. Polkadot is our flagship project."
They have ready-made solutions for decentralization and uncensored internet projects.
The future of cryptocurrencies will be built on such ecosystems.

Right now, People that are super hyped about deFi products don't really care about where the servers are or whether or not the it's hosted on centralized web servers or  not.  They have no interest research the nitty-gritty details abeg these DeFi products they're investing it. It just reminds me of the good old IEO days where everyone was only concerned on how much money they could make on each ICO or ICO they participate in. I can say nearly 96% of not all Crypto projects (not just DeFi) are hosted on centralized web servers.

you are right and it is clear that Defi projects still utilize centralized platform to promote or develop their project which opposes the blockchain technology it is promoting. i think that the reason behind this is we are yet to have fully and solid decentralized web servers were such project with high traffic can be carried out. i believed that in the future, the defi projects will migrate easily to decentralized platforms offering web services.

This is well said. I think the biggest question is, how many projects out there are even decentralized? Just like you said which I also agreed to, people do not care about decentralization because so far they have the opportunity to make money within a shortest time possible they are okay. Funny enough, for a project which calms to be a decentralized finance platform, but however isn't decentralized shows the level of negligence which has grown in the mind of people as they only invest to make profit, no more because of the idea or whatever. Till date, Bitcoin has remained the best and only decentralized cryptocurrency, others or maybe 95% are just a shadow of what they protary to their investors.