3min chapter

Patrick Boyle On Finance cover image

Is DeFi Really Decentralized?

Patrick Boyle On Finance

CHAPTER

Defi and Regulation

Concentration can allow for possible collusion and could limit block chain viability. Large validators could deliberately congest the block chain with artificial wash trades between their own wallets in order to push up the s that other traders have to pay them to validate transactions. Another big issue high lighted is that validators are able to front run big orders for higher trading profits. History shows that new and innovative technologies often cause bubbles, or come from bubbe it's quite possible that new ideas that come from crypto space will be of broader use in the future. Defi might eventually play an important role in our mainstream financial system.

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