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Litecoin's Charlie Lee is against DeFi and does not believe in this system

Charlie Lee - Litecoin's Charlie Lee is against DeFi and does not believe in this system

Charlie Lee, founder of cryptocurrency of Litecoin, has publicly stated that he does not believe in any way in DeFi. Yesterday has published in a tweet explicitly stated that:

The reason why I don't believe in DeFi, because it's the worst of both in worlds. In most DeFi platforms this can be closed on one side and centralized on the other, so it is not a real decentralization, but only a fiction. In that, no one can undo an exploit or hack unless more centralization is added. 

So why should it be better than what we have at the moment? This is Lee's main reflection. 

According to him, the problem that has occurred during these days to Fulcrum's DeFi instruments and has also cited a tweet by Defi Pulse who talked about the matter.

The problem is that the bZx platform on which the Fulcrum tools because of the problem he has caused the theft of Ethereum and that it has been taken offline for maintenance, revealing that there is a subject who is able to turn it back on or off.

How did it Lee pointed outtherefore this is not a real decentralization, since in a system that is truly decentralized there is no subject capable of suspending or stopping the operation.

A very similar speech was made several days ago also by Tone Ways for cryptocurrency IOTA because even in that case in the face of a problem that had allowed the theft of the tokens, the system had been put off practically only because of the decision of a single subject.

In a system really decentralized like Bitcoin, there is in no way a single entity truly able to decide unilaterally to suspend all activities and consequently to impose the decision to system users. 

Only on a centralized type system is it possible to carry out an action of this type, and when this occurs the absence of one is inevitably published true type of decentralization. 

Total decentralization is therefore a very difficult goal to achieve, so much so that it would most likely be right to speak of various degrees and types of decentralization. 

So some tools are decentralized, others are not, but even Bitcoin has on some occasions been accused of not being completely a fully decentralized system. 

In any case, on any system the fact that there is a single entity that is able to decide unilaterally the suspension of the activity of a system which reveals the centralized nature, because one of the first conditions that must have a system that to be defined decentralized is the absence of someone who is able to stop it.

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Silvia Faenza

Graduated in Political Science and International Relations at the University of Salento, in the 2014. From 2015 he is in charge of content management for online companies and publishing agencies, mainly as a ghostwriter, copywriter and web editor.

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