Permissioned blockchains have gained popularity as an alternative to open distributed networks, attracting institutional investment by ensuring security through restricted access. 

Although permissioned decentralized finance (DeFi) could ease the transition for traditional finance players into the blockchain industry, it is undoubtedly a departure from the core ethos that drives the development of permissionless blockchains like THORChain, a non-custodial decentralized exchange that opens access to native and cross-chain liquidity.

Permissioned chains offer the familiarity standards of security, privacy, and control that financial institutions are used to. By that very nature permissioned DeFi is oxymoronic, recreating the restrictions of the traditional financial system that DeFi was designed to bypass.  Such permissioned protocols may attract institutional support but inevitably stray from the open, transparent, and equitable ethos that is championed by permissionless blockchains.

Pedro Isaac Lopez, Chief Growth Officer at THORWallet DEX, the gateway to THORChain and the only non-custodial DeFi wallet to offer cross-chain swaps, advocates for the position that if it is not permissionless, then it is equally not decentralized: it’s centralization masquerading as innovation. Listen in as we discuss how decentralized blockchain networks maintain security through over-collateralization without sacrificing open access for everyone.