HomeAnswerNotificationsCustomize Feeds
PROFILEQUESTION
Is there exist a concept like centralization within decentralization of blockchain & cryptocurrency ? If yes, what are some of the best examples ?
$0.66
3 ANSWERS

Yes there are challenges like centralization within decentralization of blockchain. And you see in most of the cases the consensus is at the cost of decentralization of the blockchain. Some blockchain projects compromise with the decentralization little bit to enhance and improve transaction throughput of the blockchain. But this is a functional part of the blockchain. There are other use case also where the small group of people make centralized hubs and try to influence & reap the benefits as much as they can. In PoS consensus mechanism too, you can see a lot of centralization as that is stake based. So if you have staking power you can make it centralized.

Here are some examples of centralization in decentralization:-

  1. Most of the mining power is concentrated in china for the PoW based bitcoin, so it is not as distributed as thought up while conceptualizing it. But as anyone is free to do mining, no one might have considered this case earlier. But in reality we can see a lot of mining pool getting concentrated around China and this is an example of centralization of mining power within decentralization.
  2. In steemit, mostly those who get a witness vote from freedom account generally feature in top 21 witness list. That means it is an indirect way of controlling something within a concept of decentralization.
  3. NEO is a cryptocurrency which has been broadly criticized for centralization.
  4. If there are group of people(say 20/25 people) who are making a circle and upvoting each other and there are such groups within the community who are doing that, then it is a perfect example of centralized hubs within in a decentralized community.
$0.01
Reply

Yes.

Let's take our own Blockchain's example, large stake is held by few people.

$0.00
Reply

maybe one of them can be taken or follow how to manage shares. because stocks are almost the same as digital money that doesn't seem to make this program sustainable

$0.00
Reply