What is Decentralization Maximalism?
Let's find out Decentralization Maximalism meaning, definition in crypto, what is Decentralization Maximalism, and all other detailed facts.
The term Decentralization Maximalism is used to describe the view that emphasizes the removal of central bodies which take on the responsibility of regulation in every aspect of our lives.
It’s backed by the belief that no central authority will be able to use the powers bestowed upon it for its own personal gain thus avoiding corruption and all activities related to it.
Decentralization maximalists highlight other advantages of a decentralized system such as democracy, freedom of speech, and community-driven organizations, among other things.
It’s important to keep in mind that the implementation of a decentralized system in every aspect of our lives sounds good only in theory.
Decentralization, just like any other system, has its disadvantages. However, decentralization maximalism doesn’t take any of them into account when evaluating the benefits it could provide.
The main disadvantages that come with decentralization are a lack of a continuous vision, loss of control, high costs, and general inefficiency. In extremely dire situations, an absence of a governing authority can even make it possible for it to turn into full-blown anarchy.
When it comes to the crypto sector, especially decentralized finance (DeFi), decentralization maximalists are generally seen as extremists that see their viewpoint as superior to any other.
Another example of this type of thinking is Bitcoin Maximalists. They take on the view that Bitcoin will become the only cryptocurrency used within the sector due to its unquestionable superiority over every other digital currency.
Be careful as to not confuse decentralization maximalism with the general term decentralization which refers to the lack of central authority in organizations only.