I think all of us crypto nuts can agree that one of the primary purposes of blockchain technology is a decentralized network. I have been in the crypto - game for a few years now - impatience, greed. (the traders who fail)
Yes, the rise of Crypto is almost unprecedented that it really has become a victim of its own success. So much so that many the average user felt the system was unusable at times. Transaction fees, scams etc. In recent times quite a few layer 2 solutions were developed to compensate this massive demand. I mean we really are the first generation that has the ability to spread wealth management on a worldwide scale, not just in the USA.
Most of these new solutions are very centralized because it is easier to setup and much faster to implement without having to attract independent operators to validate your system. The hard truth is that we cannot sacrifice decentralization for efficiency. This payment system must be trusted by users all over the world. Not your keys not your coin bla bla bla. Point being, in order to be trusted it is necessary to verify data from independent sources with a financial incentive to do the right thing. That may not always be the case in a centralized crypto platform. We must be patient. Let the tech develop
Now here is the rub: the market is soooooo new and sooooo oversaturated that newer folks want someone to handle it for themselves. THIS IS NOT TO BE TAKEN LIGHTLY. The truth is a great majority of this business will fail. Now hey if you have a super high risk tolerance and you like chasing moonshots, more power to you. In my opinion, crypto is a long term investment. Not only that but new tech is coming out by the hundreds every week. Who knows when the game will change?
For example, CAKE v DFI. Yes, you can stake your DFI on CAKE but you don't have the private keys, the system is completely centralized (often more prone to malicious users), not to mention the rewards. Most people don't want to run their own node and would prefer just to stake with a platform that handles it for them. Its like saying, "hello sir, I am a financial expert. If you give me 100$ I will double it and give it back."
Now not all centralized platforms are bad actors but my point is why even risk it?
Trends come and go... there was defi, nfts, etc. It appears that the next leg of crypto innovation is the creation of protocols which are interoperable with all major blockchains. This is a whole new world. Dex aggregators to find the best price across the many exchanges. Yield farming, liquidity pools etc connected to multiple blockchains to get the best prices / rewards.
I guess my post is more of a question... How is this possible in a decentralized network? Would a protocol have to run nodes for each of the blockchains they are connected to? Seems like a tall order.
Please, I'm curious what everyone thinks. I would also really like to know if there is a project attempting to connect the major chains doing so in a decentralized manner?
Centralization in a market is natural. The rule of three as they say. But will the remaining winners be decentralized in some way or is this just a pipe dream?