Most Cryptocurrencies Are More Centralized Than You Think
Decentralized system in cryptocurrency The whole point of cryptocurrencies is that they’re decentralized. Peer-to-peer cash; trustless exchange; bypassing intermediaries. So why are numerous cryptocurrencies structured more like central banks? From adjusting wallet balances to controlling nodes, many crypto projects behave just like the financial institutions they were meant to replace. Throw in the cult of a strong leader, and there’s little to differentiate some altcoins from the Paypals and Visas of the world. The De-Decentralization of Cryptocurrencies The word “decentralized” doesn’t appear in Satoshi’s original white paper (nor does “blockchain” for that matter) but it’s since become synonymous with Bitcoin and its successors. For a digital currency to be truly decentralized, it needs to achieve two things: to be censorship-resistant and to be immune from meddling by project leaders. If the price of a coin is dependant upon its founder staying alive,...