DeFi. Advantages of decentralization. Part 2/2

👁 Speaking about cross-chain in the context of DeFi, it must be mentioned that the more decentralized the system, the more reliable it is! The same applies to blockchains: the more decentralized and therefore secure they are, the more difficult they are to manipulate. In professional language, more decentralized blockchains are called anti-fragile. They are less prone to failures that sometimes occur in centralized systems.

🤬 2022 was marked by many financial shocks, the most notorious being connected with FTX, which caused a number of other collapses: the failure of Three Arrows Capital, one of the oldest crypto funds, and the failure of the Celsius Network project, an institutional centralized lending protocol that was closely associated with the issuer of the UCDT Tether stable coin. They were all centralized, related to each other, but failed, falling apart one after another like dominoes.

🙂 This is another advantage of decentralization: the more truly decentralized projects on the market, the more resilient and antifragile each of them is! Despite their close relationship, the risks of cascading collapse are reduced.

🤓 The conclusion is that decentralization contributes to greater project security, in the first place. Secondly, it reduces the risk of its failure. Thirdly, it positively influences the security of other related projects on the market!

What other advantages of decentralization do you know?