This unprecedented openness has inspired large-scale permissionless innovation and unbounded creativity

But permissionless voting is vulnerable to governance attacks,

Loans in the crypto world tend to be overcollateralized, requiring users to put up more value in crypto than what they receive in a loan. Although this works reasonably well for users who have already accumulated capital and want to use that capital in a different format (i.e. borrowing fiat currency against their crypto holdings), it doesn’t work well for the more standard reason people take out loans: because they don’t already have the money they need. Needless to say in an ecosystem whose advocates like to promise will “bank the unbanked” and help the marginalized, this is a bit of a setback. The need for these overcollateralized loans again stems from a lack of indicators to a person’s trustworthiness like those that are used in traditional finance, such as credit scores or banking records. Overcollateralized crypto loans are also made even more necessary on some anonymity-preserving loan platforms that choose not to require know-your-customer (KYC), who otherwise would see an influx of anonymous users borrowing money and making off with it.