Identity Binding vs. True Sovereignty: Two Completely Different Paths

In the DeFi world, you face a fundamental choice.

One is the identity binding model. Your on-chain identity is attached to a centralized authentication system, with credit records, transaction history, and asset evaluations locked within a specific profile. It's convenient—faster loan applications, fewer transaction restrictions. But at what cost? Your data belongs to the system, your identity can be frozen, flagged, or censored.

The other is true sovereignty. You have full control of your private keys and your on-chain identity. No intermediaries, no approval processes, complete freedom and responsibility go hand in hand. But this also means: no one can help you recover lost keys, no one provides credit endorsement, and all interactions are based on code and consensus.

Many believe these two paths can be balanced—both convenience and freedom. The reality is, every compromise in the DeFi ecosystem is a trade-off of some sovereignty. Using external identity systems to get better trading conditions? That means you're no longer fully autonomous.

The key question is: what do you truly want? A more user-friendly financial system, or genuine control over your assets?