Topic: Bitcoin will become the most decentralized cryptocurrency? (Read 219 times)

Bitcoin's security assumptions rely heavily on the protection of full nodes, which have at least most of the economic value owned by independent users, because full nodes are the reason for the execution of consensus rules. My guess is that in Bitcoin, many whales are early adopters, and late adopters who get more BTC are more likely to understand Bitcoin and run full nodes, so at least BTC Half is protected by full nodes by independent users.

the 2 main 'centralisers' is not usernodes. or pools

its actually merchants and devs

if it becomes a thing where most of the ways to buy bitcoin and sell bitcoin are through 1-3 big powerful exchanges. then even miners will end up needing those exchanges. and so would users. which leads to incidences like the 2017 NYA where the coercion of merchants saying they will reject blocks that dont fit their desires sways pools to change their block numbers to flag for the same thing that the NYA merchants wanted

pools could continue mining as is and not be coerced. but then their blocks are not seen by the merchants so they cant spend their rewards with the merchants.

users wont want their transactions going into blocks that are ignored by merchants.
and so. everything favoured the main merchants

.. and a layer above that in the hierarchy of centralisation
any change of the rules isnt done by AI self forming code. its wrote by devs.
and if devs have clustered themselves together under one software brand. and define any other software brand that offers any update challenge as a opposition.. well thats centralising too
if any code changes only occur due to one software team.. its not good

..
users are just data store distributors. but have no power over the decisions of the blocks.
if users decide to reject blocks.. no on cares that node is just left lingering around at a lower block height..

however again. if a merchant rejects a block. then everyone that usually uses that merchant is affected. and if people want to continue using that merchant because its the main service.. people change their software to match the merchants preference

so if there was any base of community to watch for centralisation.. its the devs and the merchants

This is entirely untrue. Bitcoin infact isn't that much centralized. One reason is that due to big pools coming into picture a two to three mining companies control a lot of mining power of Bitcoin which means 51% attack which we think is impossible, isn't entirely impossible if these major pools decide to cartel. Infact some other Cryptos like Tezos and IOTA are much more decentralised as they are based on PoS with quite equitable distribution of the stakes. Pos coins are much more decentralized but yes not an optimal solution.

i Think that bitcoin has somewhat been decentralized from the beginning, the fact that there is no one that can control the flow of the transactions is a proof of that, people were concerned about whether it was decentralized or not because china had the most of the mining power there, but since the government has strictly banned it, i think that whole idea is out of the way, and i don't personally think that we will ever have any crypto that is going to be as popular and as successful as bitcoin and the more popular it is the more decentralized it gets.

I think you could list down different ways to stop Bitcoin and you will see how incredibly difficult it is to stop it, but you can apply thesame list to altcoins that people claim are decentralized, you could immediately discover how incredibly vulnerable that are. Just simply capture the leaders who are well known rather than being anonymous, the followers will scatter and the project abandoned/forgotten.

Bitcoin is already the most decentralized crypto currency. No other altcoin including Ethereum is truly decentralized.
That's the reason why no government is able to completely ban bitcoin.

your question contradicts your post. you already say that bitcoin is the most decentralized cryptocurrency then at the same time ask if it will become one!!!
the fact is that bitcoin is the only decentralized cryptocurrency. others are either centralized or aren't currencies.

that is intentional for most of them. for example stablecoins like Tether are completley centralized because that is their design the central authority has to issue the coins and they want to control the circulating supply. or shitcoins like XRP or ETH are centralized because they want to fully control what happens to their chain.

Decentralization isn't determined by hashrate only or the control of transactions. Centralization can also be in the sense that nodes are controlled by a few entities, or if any of the components of Bitcoin has the potential to be controlled by a single authority.
No such thing. PoW invites centralization because the nature of it promotes economies of scale. There is no decentralization if you incentivise a people with the most resources, be it having a lot of coins or hashrate.

I would not really say that Bitcoin is the most decentralized cryptocurrency because there are now some new platforms that have taken into accounts the many problems or challenges that Bitcoin got into and they incorporated those lessons into what they are offering...the problem is that most of these projects are having a hard time getting the audience and support they need. In other words, they are of no use, in reality. The thing is that when we talk about decentralized cryptocurrency, there is nothing that can beat Bitcoin for now. We don't know the future, of course. I am actually looking that there can be a time when improvements can be imposed on Bitcoin but as to when that can happen that is something beyond me.

The Bitcoin network is a zero-sum system in equilibrium: transaction fees plus the rewards for mining blocks must pay for the total cost of running the Bitcoin network.
When the block reward is zero, the transaction fee must pay all fees. The design of Bitcoin is that a miner receives transaction fees, but each miner must pay the fees for transmitting, verifying, and storing transactions.

In the absence of a tight supply of transactions, this unbalanced cost-return relationship prevents Bitcoin from being in a safe and decentralized balance.

If the cost is less, the less efficient miners cannot make more money than they cost, and then they are forced to close their mining areas and then withdraw. As a result, security will be reduced and it will become more centralized.

The only way to ensure that transaction fees are sufficient to pay for security and decentralization is to let the block size limit act as a transaction supply constraint.

Without a sufficiently small block size limit, miners will mine transactions where the transaction cost exceeds its marginal cost but is less than the total cost.

In contrast, if there is a block size limit, miners can only mine transactions that pay the highest fees. This ensures a sound balance between transaction volume and transaction fees.

In the end, we just want to figure out how to make adjustments to help Bitcoin grow. The block size limit should be adjusted very carefully, as it may undermine the security and decentralization of Bitcoin.

Therefore, the decentralization of Bitcoin has limitations, and the decentralization of nodes cannot be proved by the decentralization of nodes.

I think it will become the most decentralized eventually, precisely because it's the most popular crypto, and thus more people all over the world use it than anything else. Another factor is that it's proof of work, which allows for more decentralization than proof of stake. Mining of Bitcoin is still largely centralized, of course, but maybe it's not a big problem. As for ownership, it's really hard to determine how centralized it is because we don't always know to whom the wallets belong. There are a handful of very rich wallets, but many of them are known to belong to crypto exchanges, for example, so this doesn't really count. So I believe Bitcoin is already pretty decentralized and will become even more so over the years.

The question is, are there decentralized fiat currencies? of course not.
Are altcoins decentralized? Most altcoins are tokens and networks are mostly Proof of Stake and a few Proof of Work coins have enough hashrate to determine that they are decentralized.

The name of decentralization does not make these currencies decentralized, but rather the amount of effort expended in order to be decentralized in the sense of how much I need to control Bitcoin transactions and is it possible to carry out the double-spending attack and for how long will this attack continue.

Most decentralized or not, it will not change the fact that Bitcoin is the biggest and most favorite cryptocurrency.

Do you know gold? There are metals that are more scarcely and more valuable than gold but gold is the most popular and favorite precious metal for investors.

The Big Hash Power Migration because of China crackdown on mining will help the hash power decentralizes more in more nations and geo-locations. It is good but it will be better if those hashpower will be decentralized in more companies, more different owners.

One company can decentralizes mining farms in different nations but it won't help the decentraliztion of Bitcoin network. Fortunately, what we are witnessing with the Migration includes both decentraliztion in geo-locations and ownerships.

Number of nodes isn't the only metric to determine decentralization; how much control any entity has or has the potential to affect the network in any manner will affect the degree of decentralization. You can also argue that having mining pools makes it less decentralized than desired where the industry is largely dominated by larger farms. You can also argue that having a group of people dictating what goes into the "reference" client arguably doesn't make it decentralized. The counter argument being people can run whatever clients that they want; but Bitcoin's function or its "branding" depends on the economic majority.

You can't label Bitcoin as being the most "decentralized". There are tons of areas which Bitcoins, or cryptos in general are deficient in. But they are the lesser of the evils.

Since Bitcoin was created, the Bitcoin network has been operating normally, and neither the government nor the regulators can stop the development of Bitcoin. The reason why Bitcoin can become a valuable cryptocurrency is largely due to its anti-censorship characteristics through decentralization. Every blockchain that emerged afterwards also started with a high degree of centralization. Although its creators intend to improve this as soon as possible, unlike Bitcoin, it is difficult for most blockchains to make substantial progress in decentralization.
Bitcoin has the most nodes running in the world and there is no central authority to distribute it. Bitcoin the most decentralized cryptocurrency?