The decentralized movement is about removing the barriers that have long locked ordinary people out of financial systems.
It's about introducing fair democracy and ensuring that everyone—no matter who they are—has access to financial freedom.
That's why true DeFi is permissionless.
Here's what that means.
The term "permissionless" simply refers to systems that you can enter without first requiring permission.
In other words, permissionless systems mean removing centralized authorities and gatekeepers from the equation altogether.
It's a simple concept, but a powerful one.
When you're interacting with a truly permissionless system, you don't have to worry about being denied access on the basis of discrimination.
You also don't have to worry about being censored or blacklisted as a consequence of standing up to a company or organization.
In a permissionless system, it's not who you are or where you come from that defines what you're "allowed" to do. Instead, the only person in control of your future is you.
Traditional finance operates on permissioned systems. These systems often have centralized control, with a few entities and individuals having significantly more power than everyone else.
In the world of TradFi, both services and users themselves are at the mercy of a range of institutional, commercial, and governmental pressures.
Essentially, every decision you make in TradFi has to first be approved by someone who is deemed 'higher on the food chain' than you are.
Creating a bank account, for instance, means having to first get approved by a centralized financial institution.
This institution will either approve or deny you based on a combination of their own criteria, as well as the guidelines placed on them by regulators.
In the world today, around 1.7 billion people do not have bank accounts. For many of these people, this is a consequence of factors that are entirely outside of their control.
Not having a bank account also locks people out of other crucial financial systems. As other permissioned services like payments and lending platforms typically require bank accounts.
In TradFi, you can't even make a payment or trade an asset without first being approved to do so.
Even if you had the funds sitting in your account, a transaction could be denied because the bank doesn't agree with your purchase.
Many banks today, for instance, do not allow their users to pay for services related to crypto.
True DeFi cryptocurrencies have no gatekeepers or authorities that can restrict or control users.
This is because blockchain technology allows users to interact with one another through peee-to-peer networks that do not rely on the permission of intermediaries like banks.
For this reason, decentralized finance is more democratized, open, and inclusive.
All transactions and messages that are recorded on a blockchain are stored in a public ledger. When this ledger is immutable, it can never be changed.
This means that true DeFi cryptocurrencies are impossible to censor.
Permissionless cryptocurrencies give unfettered access for anyone to join the network and actively participate in its future.
Unlike in TradFi, anyone can open up their own crypto wallet in order to gain unrestricted access to the Web3 landscape.
In true decentralized systems, you can trade and move assets freely and are treated as having an equal voice and equal access to opportunities.
Liquid Loans is a decentralized protocol that is entirely permissionless.
It's a true DeFi project where all users are treated equally.
With Liquid Loans, you'll never have to ask for permission again.
Join The Leading Crypto ChannelJOIN
Disclaimer:Please note that nothing on this website constitutes financial advice. Whilst every effort has been made to ensure that the information provided on this website is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we strongly recommend you consult a qualified professional who should take into account your specific investment objectives, financial situation and individual needs.
Connor is a US-based digital marketer and writer. He has a diverse military and academic background, but developed a passion over the years for blockchain and DeFi because of their potential to provide censorship resistance and financial freedom. Connor is dedicated to educating and inspiring others in the space, and is an active member and investor in the Ethereum, Hex, and PulseChain communities.
Your Genius Liquid Loans Knowledge Assistant