The founder of JAN3 and former Chief strategy officer at Blockstream, Samson Mow, has been in the headlines for his shocking statements about the Decentralized finance or DeFi cryptocurrencies. He believes that the DeFi protocols lack decentralization and cannot compete with Bitcoin because of their inability to provide an effective monetary network.
Mow noted that DeFi projects are owned and controlled by entities that can modify the protocol very easily.
During an interview with Cointelegraph, Mow said that “Bitcoin, at the fundamental level, is money, and it should be immutable.”
Because of Bitcoin’s (BTC) decentralization, it’s exceedingly difficult to change its protocol, which makes it a unique contender for becoming a truly global monetary system, according to Mow.
Despite the immutability of Bitcoin’s foundation layer, developers can still build apps on the blockchain by utilizing layer-2 scaling solutions. Mow is a prominent supporter of the Lightning Network, which enables immediate and low-cost Bitcoin transactions. Mow is attempting to speed the path toward hyperbitcoinization by supporting Lightning technology. Hyperbitcoinization refers to a situation in which users can exchange Bitcoin without having to convert it into fiat currency.
Visa, Mastercard, and everything else will be replaced by Lightning, he predicted. It also lowers merchant costs, resulting in a better shopping experience and savings for customers.
DeFi and criticism
On the one hand, where a survey by Morning Consult reveals that DeFi, Web3, and CBDC need more exposure, many are criticizing them.
This is not the first time when someone questioned the decentralizing power of the DeFi industry. Before this, as TheCoinRise reported in December last year, Twitter’s founder Jack Dorsey also criticized and expressed his disappointment with the centralized nature of Web 3.0.
With the increasing number of hacks, many regulatory bodies and U.s. senators have shown their concerns over the booming industry.