Topic: Decentralized System Disadvantages (Read 682 times)

in my opinion the decentralized system  does not have business services with a centralized system, and also decentralized services are very cheap, in its use we must also be careful

There are so many disadvantages of decentralized but almost all of us believe that there is more in advantages like no government can manipulate the value of bitcoin, everyone can buy without authorization, anonymous profile. The only disadvantage of decentralized is that there is no law above it so you can blame anyone except yourself.

There are some disadvantages in a decentralized system such as lack of control over the system, non one to handle the network in critical situations and some miner issues but non centralized systems can eliminate far more critical problems which has in a centralized system but we should understand that no one can understand the true potential of decentralization because before bitcoin, Ethereum or any other non centralized currency decentralized payment systems didn't exist in the world and many kept there trust on controlled organizations such as banks. investing companies and other so when we say turning centralized system into decentralized system through blockchain technology can be beneficial so even there are some miner disadvantages in a decentralized system it is valuable when considering significant benefits  

I don't think he is actually offtopic here

The sad truth is that centralized exchanges turn this whole decentralized system into a centralized system too. As you might know, most of cryptocurrency activity happens at exchanges whether you like it or not. So you can't just choose to ignore them even if you are talking about the decentralized system as a whole. It is a fact of life, a part of reality if you please, which you simply can't ignore. If you, nevertheless, do, then the conclusions you draw won't be relevant. They will be fallacious and incorrect

The way I see it, they tried to corner the market much like the Hunt Brothers did with the silver market. It sounds great on paper: Use obsolete hardware to mine Bitcoin Cash, withhold mined coins from the market and buy at spot to drive up the price.

I just think it would have worked out much better for Bitmain if there wasn't a gigantic supply of coins perpetually waiting to be dumped on them -- coins everyone got for free when the fork launched.

I'm sorry but your are out of topic, we are not talking about exchange, we are talking about the decentralize system as a whole, like the blockchain.

So you are saying that fiat is not use for funding terrorists and illegal transactions, regulation does not solve it but will minimize this kind of activity from happening. I will still vote for the blockchain to remain and be successful, give that task to the government if they want to regulate, as long as it will not change the technology which is decentralize.

There are many advantages to consider than disadvantages and that is the main reason why blockchain technology and decentralized currency systems were introduce in the first place but with decentreliazation many systems doesn't have authorities to manage them in order to make sure they accomplish there vision and mission which was build in the first place and that is the main problem why some decentralized inventions tends to faile without achieving there targets

There is no one can trace every transaction in decentralized system on which can be possibly used in illegal activities that is breaking the law of the government and can cause us a risk. Also, there is no specific people that we can contact if something bad for our transaction has been happen on which only the system work on it and we didn't know how long before it become working properly again.

To my mind, one of the disadvantages is that decentralized exchanges, if we take exchanges as an example, have lesser pool in comparison with centralized platforms. Furthermore, for a cryptocurrency to be presented at the exchange, it is necessary to employ a smart contract, and not all of them use it.

The above option was indeed some attribute which was the disadvantages of decentralized system of crypto currencies but if you look at the bright side of it, the government hate decentralize of crypto because it the total liberation from the government and the banking sectors failure. Concern the lack of authority, the crypto community are the authority which crypto currencies have but it unfortunately that people sides.

You said it right mate,the dark side of the centralized crypto community is one big factor why the disadvantage occurs without regulation this can be use in many bad aspect such as fundings the terrorist or used as payments for illeg Transactions like gun running or drug trades

I heard that some countries are now regulating bitcoin but how did that happen ? Because im thinking the same way as you   ,  i thought decentralized means its immune to regulation ?

Anyway , when it comes to disadvantage of decentralized system i think that is the unstableness which causes the price to fluctuate too much and the anonimity which can cause for more fruads and other illegal doings  but i love it better because government arent in control which means its safe from severe manipulation and corruption  .

Decentralized mean there is no authority to guide or control the system under any circumstances which can give benefits to its users such as low transaction fee, efficiency but also gives disadvantages like non reliability, lack of support services and other which are provided by administrators in any digital system but that kind of service comes with a prices so there are both good and bad for users when using a  decentralized system

Bitcoin have advantages on decentralized system because government regulation can not touch bitcoin and government can not control the transaction data. But the disadvantages this decentralized system is government can not issue regulation on bitcoin if used as currency.

There are disadvantages too and it is common for any new technology and for decentralized blockchain technology what I see as disadvantages are,

1. Lack of authority to control price fluctuations - Unlike central banks for major fiat currencies to control fluctuation levels bitcoin and majority of crypto has no party to step in and balance the situation
2. Lack of acceptance from governments and other centralized organizations because many afraid to trust a system that has no leadership so even decentralized digital currencies are potential majority of governments refuse to accept them

Above are not problems for us or that we cannot eliminate with time but are major facts why a certain percentage of the world haven't still accept our community

It is really a hard thing to achieve cent percent decentralization on everything. When it comes to decentralized exchange, it is a must requirement for the growing decentralized cryptocurrency network. Unfortunately quite often some sort of hacks make the users fear much about holding the assets even on the decentralized platforms. The security risk keeps growing as hackers are more intense towards cryptocurrency looking its growth happening with time.

in my opinion the most difficult thing in this decentralized system is that it is difficult to implement in the real world, the reality is that there are still many things that are not suitable to be implemented but are forced and in the result, it only gives unimportant features and does not even have an impact on the decentralized ecosystem

Idex,Etherdelta,Forkdelta is most favorite Decentralized exchange. But now many peoples don't believe those exchange for fraudulent activities.
There are no regulation in DEX exchange i think it's big problem like Suspicious transaction.

Here are the disadvantages which are based on my studying of cryptosystems:

• High hardware requirements

         It seems, the world is moving towards cloud-based systems. For example, let's take a look at what Apple is currently selling: MacMini and Macbook Pro are still have the base configuration with only 128 gb SSD, iMacs are still being offered with hard drives (pretty ancient technology at this point). For basic usage that's okay. But if you need to be involved in crypto, you should have a much more capable machine.
        Even if you don't intend to mine coins, just to be able to make transactions you are supposed to run a full node. Yeah, there are some workarounds, such as using third-party master nodes or whatever they call them, however, almost all of the available approches are not recommended by security experts. When you don't have your own full node you are relying on someone else's fairness. And, as you may know, humans are not the creatures we can blindly trust.

• Low protection against criminals

        In a fully centralised system we know who is responsible for all the good and evil things. If somethings goes wrong (e.g., your money was stolen), you will still have a chance to resolve the issue successfully, because you are protected by the law, and you know the entity you should press charges against.
        In a decentralised system you are on your own. If somethings goes wrong and your money's gone, nobody will help you. It's sad, but (at least in current implementations) the only thing you can do in this case is...to move on.

• High complexity

        In a centralised system the most important security decisions (e.g., 2FA, MFA, Oauth etc.) were already made for you. In a decentralised world you should invest the time to ensure that your savings are protected taking into account all recent advancement in cryptocurrency infrastructure.

• Possibility of 51% attack

        Basically, there is no way to prevent someone from controlling more than 50% of the network's mining hashrate, or computing power. And if this happens, all your coins value will be dropped down to zero because you are no longer protected by the blockchain.

• Hard to implement refund policies

        It's hard to image a shop that successfully operates without providing clear refund policies. If you are not 100% satisfied with your purchase, you should have a right to return the product and get a full refund. With constantly increasing complexity of cryptocurrency systems it's getting more and more difficult to incorporate refund features into the shopping flow.

That's what I can tell you regarding disadvantages right off the bat. Personally, I believe that all or almost all of the aforementioned points will be resolved in the future by some talented people who always come up with unpredictable and bright ideas.

Things can still be regulated but this is a new technology, thus the government is still in the process of finding a good system to regulate this system. Blockchain is a perfect technology for me as it provides real transparency, we do not need to rely on people that proclaim they are trust worthy but in reality we never know if they are. System can never be cheater, it has no emotion unlike humans that are very close to temptation.