Uniswap recently published the draft version 4 of the source code of its platform. An initiative supposed to highlight the decentralized nature of Uniswap, compared to its centralized competitors. This decentralization is called into question.
Ripple’s CTO doubts Uniswap’s decentralized nature
Uniswap is one of those platforms considered to be decentralized. The company is indeed the prototype of differentiation between the Decentralized Exchange (DEX) and the Centralized Exchange (CEX).
The first, like Uniswap, being seen as decentralized compared to the second, Coinbase for example. That is, unlike these, DEXs work without intermediation.
Thus, transactions on these exchanges would be carried out without the a priori control of an entity, over the funds, users in particular. Is this really the case with Uniswap in this case? David Schwartz seems to think Uniswap isn’t as decentralized she claims. On Twitter, the CTO of Ripple relayed a news feed from tweeto @LefterisJP, the founder of @rotkiapp. This, with comments: “Uniswap is not decentralized”.
This controversy concerns the publication by Uniswap of the project of the 4ᵉ version of the source code of its platform. The latter had, in the process, requested the opinion of users on this project supposed to strengthen the decentralization of the exchange.
Uniswap, guilty of open source washing?
In response, @LefterisJP accused Uniswap of practicing“open source washing”. A position that suggests that the exchange would apply open source terminology only for marketing purposes. This, while it is known, according to him, that no exchange is perfectly decentralized.
Better, he explains, version 4 of the platform’s code would be published under the Business Software License (BSL). A software license that only becomes open source after a certain period of time has elapsed after its publication. Not to mention, moreover, the fact that Uniswap is controlled by Uniswap Labs.
That said, he argues, unlike how it is marketed to the public, Uniswap is not a decentralized platform. “Building in public is open source. But getting the public to build for you without giving anything back is what BSL does”said @LefterisJP in particular.
The least we can say is that this controversy revives the debate around the effective decentralization of exchanges. For some, like tweeter @XRPcryptowolf, thinking a platform could be decentralized is wishful thinking. “The biggest lie in the cryptosphere is decentralization. Nothing is really decentralized. At least Ripple is honest about being centralized,” did he declare. An opinion that surprises many users.
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