Why Permissioned L1 Dem Dey Destroy the Main Value of DeFi Composability
Na Pepper write this one and na him be head of Marketing & Growth for Alephium
Hello my wonderful people, una welcome! This one na the 3rd column wey Pepper, our Head of Marketing & Growth, dey write. For the last one wey him write, him talk about how models wey dey generate fees fit commot designs we carry inflation for head because too many potor- potor low-quality and centralized projects full everywhere gbosa. This new talk dey look well-well for the wahala wey permissioned Layer 1 blockchains dey carry come.
Note: This talk na wetin Pepper carry for him own min, e no mean say na wetin the official Alephium company dey talk.
Last year for here, I notice say plenty people for Crypto Twitter and Web3 media space start to dey hype new Layer 1 blockchains matter again. If you first am, e good for eyes. But as I don talk before, the problem wey dey be say plenty of all these new L1s we dey na corporate public blockchains where people wey dey work dey wear suit. Companies like Google, Circle, Stripe and others dey follow them for back. The main thing wey dey carry for mind no be decentralization atall; na compliance and permission.
Dem dey drop speed and “security” for institutions, but make I tell una the truth about the matter: na trap. E just be like Trojan horse.
For people wey be builders and for investors wey still carry better thing for mind about Satoshi vision wey focus on decentralized finance, these permissioned L1s wey dey na serious wahala. Dem dey kill the main thing wey dey give DeFi power : composability. Instead of make people get freedom, dem go carry one central control point come and na him be one big kill-switch for every app wey build on top.
I don look this matter well- well, once the koko base layer gree for even one permission, na him be say the whole ecosystem don carry censorship risk. Everything don dagbaru be that. Anything wey you like, make you call me but that thing no make sense atall.
DeFi Backbone Na Trustless Composability
The main power wey DeFi get na composability.
Wetin e mean be say different decentralized apps (dApps) fit connect with themselves come dey work together without any wahala: e commot say no permission, no middleman, no trust wahala. Lending protocols, DEXs, stablecoins — all of them suppose dey work together automatically.
This freedom wey we dey see dey stand on two big Web3 principles:
Permissionlessness – e commot say anybody, anywhere fit use the system anytime
Credible neutrality – e commot say the base layer no fit favor or punish anybody
Once person carry permission put inside L1, him don break these two pillars wey dey for up. And once that kind thing happen, DeFi innovation don suffer serious kwantar.
The Real Threat: Kill-Switch for Layer 1
Make we carry this matter come down well-well.
If one company commot come build blockchain wey dey centralized from ground to up, dem don carry one big security problem come be that: them dey call am “kill-switch”. Every dApp wey dey for that chain go inherit am.
Imagine blockchain wey dey require KYC or blockchain wey dey use small Proof-of-Authority validators. If regulator carry their wahala come, dem fit freeze address or block transaction. Kashina!
The result go be? Disaster for every app wey dey on top.
The dApp Don Spoil
Wetin e come commot be say DEX we dey for that chain no go fit nak hand for chest say user money safe again. Even if say smart contract dey correct, the base layer fit just block the transaction or lock the UTXO. Story don finish be that.
The Token No Be Decentralized Again
Any token we dey for that chain dey under central control be that. Once L1 fit freeze or block person, that token don lose immunity be that. Resistance to seizure? Don commot kpatakpata.
Or you think say e never happen before? E don happen. Gbrekete chains don do am.
Research don show say some blockchains get built-in wallet blacklist and freezing powers. Sui even do am publicly after hack. ByBit exchange do their own research come check 166 blockchains — the result wey commot shock even me.
Value Don Shift Go Control
Instead of say make shared wealth wey dem don create like real Web3, the system now dey carry him hand create control for few people. If you look am well-well, yes, speed dey nice: but you go pay with decentralization and autonomy.
Make I talk am again: if any layer wey dey for the base chain dey permissioned, that layer don become kill-switch for every dApp. Utility, security, censorship resistance — all of them go waka commot.
If to say I be builder, I go seriously fear that kind chain.
Alephium: Solid Foundation with No Compromise
Alephium don start tay-tay before I waka come join the team. But wetin dem don build for ground motivate me well well. Dem choose better principles over shortcuts.
Instead of make dem just copy EVM or old designs wey don dey compromised, the team build something wey dey fresh from scratch. This one na commitment to real decentralization — the Web3 wey we carry for mind say we go get from the very beginning.
Alephium jam-jam credible neutrality and permissionlessness inside the core tech. Kill-switch no dey inside am at all.
PoW Dey Guarantee Decentralization
As wey dey use Proof-of-Work and dey scale am well-well, Alephium scatter-scatter consensus for miners hands worldwide be that. If small group of corporate validators no dey, no “friends and family” network be that.
This structure strong well-well against political or corporate censorship.
sUTXO Dey Guarantee Security
Alephium sUTXO model and custom VM dey build with security for mind first. Many smart contract kurukere dey blocked at VM level. Security dey come from mathematics, no be centralized oversight.
Scalability Without Sacrifice
Blockflow sharding dey give high speed and low fees; the same things wey corporate L1s dey advertise; but without cross-chain wahala or loss of decentralization.
This na how Web3 suppose be for eyes.
Builders, Make Una Choose Well-Well
Corporate L1s dey force every Web3 builder to choose:
Fast but kalu-kalu chain wey get built-in kill-switch
ORPlatform wey build for freedom wey go last well-well, security, and autonomy
I believe say Alephium technology — PoW, sUTXO, Blockflow : dey commot the risks wey plenty other chains carry.
We dey give una the only truly open alternative wey fit last for generations tanga to wey dey for front, so say boardroom decision tomorrow no go destroy the work developers dey do today.
Disclaimer
This is a community-run blog for third-party contributors. The views expressed here are those of the authors and do not reflect the official Alephium project. This content is for informational purposes only and does not constitute financial, legal or investment advice. Cryptocurrency carries risk and is highly volatile. Information may be incomplete or outdated. Always conduct your own research. We disclaim liability for any loss or damage resulting from reliance on this article.
