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<p class="is-style-lead">Ripple&#8217;s chief technology officer (CTO), David Schwartz, has argued on Twitter that Uniswap, a leading automated market maker (AMM) and decentralized exchange (DEX), is not as decentralized as it claims to be.</p>



<h2 class="wp-block-heading" id="uniswap-8217-s-decentralization-claims-challenged">Uniswap&#8217;s decentralization claims challenged</h2>



<p>In a Twitter thread by Lefteris Karapetsas, the founder of Rotki, raised concerns about crypto projects that claim to be decentralized but use restrictive policies, thereby undermining the ethos of blockchain technology. </p>



<p>The discussion revolved around Uniswap v4 which was recently <a href="https://finance.yahoo.com/amphtml/news/uniswap-publishes-draft-code-upcoming-130000731.html" target="_blank" rel="noreferrer noopener">released</a> under a business software license (BSL), allowing the software to become open-source after a certain period. </p>



<p>Karapetsas argued that this licensing approach disqualifies Uniswap v4 from being classified as open-source. Per this position, David Schwartz joined the conversation, stating that Uniswap is not decentralized.</p>




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<p>Schwartz&#8217;s reason for this claim lies in the existence of a legal right that dictates how others can use Uniswap. He opines that such control over the platform negates the decentralization ethos of distributed ledger (DLT) technology.  </p>



<p>He also pointed out that Uniswap is under the control of Uniswap Labs, and that further disproves its claim of being a fully decentralized blockchain project. </p>




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<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Do not accept projects &quot;opensource washing&quot; their work.<br><br>BSL is not opensource  and uniswap v4 was released with a BSL license.<br><br>Therefore uniswap v4 is not <a href="https://twitter.com/hashtag/opensource?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#opensource</a><br><br>Building in public is opensource. But getting the public to build for you without giving back is what BSL does <a href="https://t.co/1I6azsdMQV" target="_blank">https://t.co/1I6azsdMQV</a> <a href="https://t.co/lCfXAu65yC" target="_blank">pic.twitter.com/lCfXAu65yC</a></p>&mdash; Lefteris Karapetsas | Hiring for @rotkiapp (@LefterisJP) <a href="https://twitter.com/LefterisJP/status/1668735734126084096?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 13, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe title="What is a Decentralized Exchange and Why Should You Care?" width="1020" height="574" src="https://www.youtube.com/embed/Ov_BJIXcReE?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
</div></figure>



<p>While this debate has generated controversy within the crypto space, it raises an important question about the true idea of decentralization across the industry, with some observers arguing that no web3 project can truly achieve full decentralization, while others strongly believe that <a href="https://crypto.news/price/bitcoin/">bitcoin</a> is the only genuinely decentralized project. </p>



<p>In related news, Ripple, the blockchain project behind <a href="https://crypto.news/price/xrp/">XRP</a> recently <a href="https://crypto.news/ripple-announces-cbdc-platform-digitoads-can-top-charts-in-2023/">launched</a> a central bank digital currency (CBDC) development platform. </p>



<p>As governments continue to explore the potential of CBDCs, Ripple aims to play a vital role in this emerging market. The CBDC market is forecasted to rise to $213 billion by the end of the decade, a significant increase from its current $100 million valuation.&nbsp;</p>




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Ripple CTO questions Uniswap’s decentralization claims

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