The Ethereum Foundation has revised its view of decentralized finance (DeFi) applications, starting to prioritize truly user-focused protocols that are away from centralized elements. This approach highlights financial systems that do not require trust in the company or founding teams.
Central Elements and Control Points Are Being Reviewed
Vitalik Buterin, one of the co-founders of Ethereum, emphasized that DeFi is the main purpose of Ethereum and gives individuals the opportunity to directly manage their assets. In addition, the presence of central controls or strict management in financial applications is considered to be contrary to the essence of the protocol.
Buterin stated that they attach importance to users being able to carry out financial transactions without the need for permission, with open source, confidential and secure structures.
“What is expected from the Defi concept is a permissionless, open source, privacy-first and security-focused global financial network.”
These statements show that Ethereum is now not only supporting DeFi in general, but is also starting to draw clear boundaries on which projects are truly decentralized.
“Walkaway Test” and User Trust
The Ethereum team aims to eliminate points of vulnerability to centralized or developer intervention. The presence of administrative keys, multi-signature wallets, or structures that allow system modification in many DeFi protocols creates potential control points in the system. These mechanisms can reduce some risks, but they can compromise users’ independence.
The “walkaway test” highlighted by Buterin refers to the ability of a system to operate completely independently of its founders. Accordingly, for a protocol to function, there should be no need for developer or company intervention, and users should be able to act completely independently.
“The goal of protocols is to minimize central bottlenecks while maximizing people’s control over their own assets.”
Emphasis on Privacy, Security and Standards
The Ethereum Foundation is providing further support to applications that protect the privacy of users’ financial information, prioritize security, and clarify technical standards. Strong security measures aim to prevent asset losses in DeFi protocols. Additionally, sharpening technical standards makes it easier for users to safely engage in these protocols.
This transformation coincides with a period when major financial institutions and technology companies are showing greater interest in Ethereum-based financial instruments. However, the Foundation remains determined not to compromise its core principles despite the growth of the network.
As a result, the Ethereum ecosystem focuses on building a financial structure that is completely user-controlled and does not require intermediaries, rather than simply moving traditional finance to the blockchain environment.
