Why is decentralization in blockchain primarily a tool to reduce counterparty risk?
Replied byMert Mumtaz
Co-Founder & CEO at Helius
Niche: Cryptocurrency
Revenue: Not Publicly Disclosed/month
Location: San Francisco, California, United States
Started: 2022
Decentralization is not a goal in itself; it is a mechanism to lower counterparty risk. Instead of trusting a centralized bank that could freeze your account due to political pressure, you trust an immutable, decentralized network. If a process does not benefit from reducing counterparty risk, decentralizing it is unnecessary.
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