Why Decentralization Matters: Burnt and the Future of Finance
At the heart of the Web3 movement is an ethos of decentralization, which has led to an emergence of innovative applications that can facilitate transactions without the need for any middleman or intermediary.
However, the importance of decentralization is often lost or compromised in most protocols today. While blockchain enthusiasts often tout their differences to traditional enterprises, the creations of many look eerily similar to the status quo in the current Web2 environment. A small group of founders determining the future development of protocols and business models that charge hefty fees are all commonplace traits of modern-day blockchain projects.
Burnt Finance is built differently. Burnt is forged from an emphasis on full decentralization. Burnt Finance users benefit from using a protocol that is shaped by the broader vision of the community and technology, as opposed to that of the founder. The community will be the ultimate owners of the network.
Burnt Finance bases its technology on the fundamentals of decentralization. Users worldwide have permissionless access to the Burnt Finance protocol. Anybody, regardless of ethnicity, political stance, or otherwise, can seamlessly use the robust features of Burnt Finance with only an internet connection.
Currently, Burnt Finance charges absolutely zero fees. Imposing no capital restrictions on users further increases decentralization since it enables anyone to access the features of the protocol without being restricted due to their financial situation. Burnt Finance maintains no custodianship over user assets which also contrasts the state of many contemporary DeFi protocols and applications. Users maintain complete custody over their assets and can utilize them in any manner of their choosing.
Custodianship and hefty fees are only the start of the questionable practices in the Web3 environment of today. Even more concerning is that core teams have complete discretion over the future evolution of a project and any associated activities. For instance, several seemingly “decentralized” marketplaces maintain complete discretion over what projects are listed and run launchpad programs where they can select incubation candidates that are favorable to their business interests. The implications of such activities can result in something as simple as a project being less favorable to the end users. It can also be as malicious as outright market manipulation, essentially taking funds from the users’ pocket and placing it into those of VC investors and project founders.
Burnt Finance has aligned itself with partners that share its vision of a decentralized future. Injective is an example of an early-stage strategic partner and incubator of Burnt Finance, which is similarly borne from an adherence to decentralized principles. Injective has built an entirely decentralized protocol alongside the only fully decentralized derivatives exchange application.
Burnt Finance’s mission is to build the decentralized future for Web3 assets. The latest wave of Web3 and DeFi products released by entities similar to traditional Web2 technology enterprises jeopardize the future of decentralization in the blockchain space. We remain committed to maximizing the degree of decentralization in Burnt Finance by ensuring that every component of the protocol is governed and shaped by the community.
About Burnt Finance
Burnt Finance is the first fully decentralized NFT auction protocol. Burnt allows users to take auctions into their own hands, enabling the minting and trading of any NFT in an entirely permissionless ecosystem. The platform can support auctions for NFTs, digital assets, and much more. Given its unique architecture, Burnt is able to achieve the fastest transaction speeds with negligible fees.