In a heated debate on Twitter, Cyber Capital founder and CIO, Justin Bons set off a fiery debate by questioning the true decentralized nature of several prominent cryptocurrencies in the decentralized finance (DeFi) space. Bons claimed that Bitcoin (BTC), XRP, Binance Coin (BNB), and Stellar (XLM) did not meet the criteria of being genuine DeFi projects.
The discussion gained momentum when Bitcoin influencer TheVladCostea challenged Bons, pointing out that decentralized companies can issue tokens, trade them, and even pay dividends in BTC using the Counterparty DEX on the Bitcoin network.
Bons acknowledged that he had used Counterparty on BTC in 2014 and supported it but stated that it technically fell short of being DeFi due to subsequent limitations imposed by the Core development team.
XRP’s Permissioned Status & Wikipedia’s Role
The conversation continued with questions about other cryptocurrencies. Bons acknowledged that Algorand (ALGO) had made commitments toward decentralizing its relayers, while Solana was deemed technically decentralized and permissionless but required a deeper analysis.
XRP’s status as permissioned was also debated, with Bons stating his reasoning for considering it a permissioned chain in a previous tweet.
As the discussion progressed, Bons revealed that he refrained from including MATIC alongside XRP and BNB in his previous statement due to its technical permissionless ness, despite concerns about the founder’s administrative key having the potential to compromise user funds.
Critics of Bons accused him of spreading anti-Bitcoin narratives for personal gain, but he defended his position, emphasizing that his statements were based on facts. Bons acknowledged that while some Bitcoin proponents saw its incapability for DeFi as a positive aspect, he respectfully disagreed.
Additionally, he believed that his critiques of altcoins might even resonate with certain Bitcoin maximalists.
The debate attracted the attention of Jayjit Biswas, Founder of Elite Web3 Forum, who echoed Bons’ sentiments, emphasizing the significance of decentralization in true DeFi.
Biswas expressed excitement for the advancements made by projects like Ethereum (ETH) and Cardano (ADA), which he believed were surpassing Bitcoin’s limitations.
As the cryptocurrency space grows, the conversation surrounding true decentralization and its role in DeFi continues to be a hotly debated topic.
However, the emergence of new projects offers users a variety of options for genuinely decentralized financial products as the industry seeks to strike the balance between innovation and decentralization.