Platforms vs. Networks: Decentralization Vectors in Security Tokens

Too Long; Didn't Read

The subject of decentralization is at the forefront of some of the most passionate debates in the security token ecosystem. Whereas the security tokens movement was born as a result of the evolution of decentralized ledgers, the first generation of products in the space have shifted entirely towards centralized architectures. Several of the most revere thought leaders space have been vocal about the diminished role that decentralization should play in crypto-securities compared to the focus on areas such as regulation enforcement and just building better products. While nobody can argue with the value of regulation or better solutions, I think find that perspective a bit short sided. When comes to security tokens, decentralization matters. In fact, I would argue that decentralization is the single element that will determine whether security tokens evolve into a new asset class and financial ecosystem or stay as unsophisticated digital wrappers of existing forms of securities. A way to think pragmatically about decentralization is to answer what I consider the most important question in the security token space is<em>: are we building products or are we building networks?</em>