Decentralization maximalism refers to the belief that decentralization is the best approach and lifestyle to such a degree that any form of regulation does not need to exist.
Traditionally, maximalism promotes the aesthetic of excess and “more is more” approach to life to flaunt one’s superiority, as opposed to minimalism, which favors keeping things simple and a “less is more” approach.
In the realm of decentralized finance (DeFi), blockchain and crypto, maximalism tends to have negative connotations, taking a similar mentality to a higher level of extremes. Maximalists tend to believe their concept, construct and technology are superior to such a level that others are inferior and not required at all (one common example would be Bitcoin or Ethereum maximalists, who believe that the respective blockchains and cryptocurrencies are the only digital asset that will be needed in future, with others being redundant).
While decentralization refers to the removal of reliance on centralized bodies such as governing intermediaries and authorities, decentralization maximalism refers to the belief that decentralization is the best approach and lifestyle to such a degree that any form of regulation does not need to exist.
In addition to this, there tends to be an excessive focus on the benefits of decentralization, namely freedom, democracy, lack of censorship, a more robust and community-driven organization, and functionality that is not exposed to failure or corruption of governing entities.
While these are true to some extent, decentralization maximalism ignores the cons of decentralization, namely a clear separation of responsibilities, lack of unified vision, inefficiency, and in extreme circumstances, anarchy and chaos from the lack of regulation and governing authorities.
Ultimately, It is the embracing of an ideal that can only exist in theory, as the reality is that some form of governance and regulation is needed to provide some form of safety, security, or deterrence for the malicious behavior stemming from the anonymity that blockchain and DeFi provides.
Author: Marco De Rossi, President & Cofounder
Marco De Rossi is the President and Co-founder at HAL, who envisions a future tech landscape where companies or developers can choose to integrate decentralized technologies depending on whether or not they need to be trustless. Marco is an experienced speaker with a background in Economics and Arts. He holds a wealth of experience in the tech space as a programmer, a digital marketing consultant and as a journalist. He is also the founder of WeSchool, a leading EdTech company with 2M+ users.
HAL is a Web3 data infrastructure tool, allowing developers, protocols and companies to track, monitor and trigger data via simple APIs and push notifications. Its mission is to democratize and simplify access to blockchain infrastructure, bridging decentralized and centralized technologies.
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