The Decentralized Economy Dream

This was the original crypto dream… it still is.


If you’re curious about what a decentralized economy is (also known as decentralized finance, or ‘DeFi’), it’s important to make the direct comparison versus today’s centralized economy:


A centralized economy has centralized powers - (Banks, Governments, Countries) - In a decentralized economy, things happens via a shared, transparent infrastructure.


In a centralized economy, each central power controls the rules around every transaction - In a decentralized economy, the verification of transactions is shared amongst a wider distributed network.


In a centralized economy, rules change (Quantitative easing, for example) which can devalue a currency - In a decentralized economy, transaction parameters are agreed in advance and verified by many.


In a centralized economy, you have to trust the centralized power.  In a decentralized economy, the message is “Don’t Trust, Verify”.

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