Is crypto becoming centralized? | Bitcointalksearch.org

Abiky

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Quote from: Questat on April 19, 2022, 10:00:02 AM

There is one reason why the majority of the exchanges are now asking for our personal details due to the widespread scamming, a concern of many. They are apparently helping us users and their protection as well against these people. Whether we like it or not, the time may come that even DEX exchanges will adopt the system of collecting KYC.
We can't hesitate these changes as this gonna happen if these scamming issues will not stop. And that was the time the government will give 100% support to cryptocurrencies.

If DEXs start enforcing KYC, then they wouldn't be decentralized anymore. That's because they're introducing the middleman into the system (something that crypto was meant to avoid in the first place). You don't need to provide personally-identifiable to use Bitcoin or any other cryptocurrency, so why should any decentralized exchange do the same? Centralized exchanges require KYC simply because they have a moral obligation to do so. Going against what was established by the government would mean shutting down their business for good.

While centralization is a dominating force in crypto land, there are still decentralized alternatives out there anyone can use without restrictions. As long as this is the case, there should be nothing to worry about. Just my thoughts Grin

KingsDen

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Centralization is not a friend of cryptocurrencies (especially bitcoin), if by chances the world of crypto bounces to centralization, know that we are doomed.
Centralization is not the initial idea of Satoshi, infact I can be right to say that what gave birth to our present day bitcoin is the urge to decentralize.
Then, one thing about humanity is that he hardly believe or rely on what he did not create or what he cannot regulate. This urge to be in control is pushing men to invent coins they can manipulate or control.
Then, the government being at the front of this centralization is an advantage and disadvantage to crypto:
Advantage - That it is helping the rapid adoption of crypto and its technology (blockchain) even by the enemies of bitcoin (The government).
Disadvantage - We are losing at fast pace the original Satoshi vision of crypto.

Questat

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Quote from: Rengga Jati on April 14, 2022, 02:41:27 PM

Slowly but it seems that the access to cryptocurrency is going bigger again to centralized.
We all know that crypto is special because this is more decentralized, different with banks or other finances.
But further, it seems changing. CEX is getting bigger. More exchanges need our data and identity in order to access or use the platforms. Additionally, some rules and regulations also become the concern in all countries to be able to involve in crypto or not. and the regulation is also getting strict.
This is what I think right now
Although fortunately, we still have some trusted DEX if we want more decentralization.

There is one reason why the majority of the exchanges are now asking for our personal details due to the widespread scamming, a concern of many. They are apparently helping us users and their protection as well against these people. Whether we like it or not, the time may come that even DEX exchanges will adopt the system of collecting KYC.
We can't hesitate these changes as this gonna happen if these scamming issues will not stop. And that was the time the government will give 100% support to cryptocurrencies.

Abiky

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Quote from: tvplus006 on April 13, 2022, 09:41:59 AM

Behind each project, if it is not truly decentralized, like bitcoin, there is a project team, interacting with which the government can demand the information they are interested in. And given that many exchanges require KYC, then almost any coin in this case can be considered as a CBDC, which is controlled by the government.

That's certainly true, mate. Projects with a publicly-known team are often targeted by governments themselves. As a matter of fact, KYC can be easily enforced when centralizing factors are in play. But when decentralization prevails, this no longer becomes possible. It was a good thing for Satoshi to never disclose his/her identity or Bitcoin would've been doomed by now.

One thing for sure is that Bitcoin is the only decentralized cryptocurrency in the world since its founder is widely anonymous. Not only that but some members of the developer team are anonymous too. This is different from Ethereum where the founder Vitalik Buterin is widely known by the public. The inception of stablecoins and the ever-rising market dominance of centralized exchanges should be a huge concern to decentralization proponents. Most people don't care about decentralization so KYC will continue to be enforced until crypto becomes no different than traditional banking. Who knows if this will mark the end of an era for financial freedom? Just my thoughts Grin

Rengga Jati

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Slowly but it seems that the access to cryptocurrency is going bigger again to centralized.
We all know that crypto is special because this is more decentralized, different with banks or other finances.
But further, it seems changing. CEX is getting bigger. More exchanges need our data and identity in order to access or use the platforms. Additionally, some rules and regulations also become the concern in all countries to be able to involve in crypto or not. and the regulation is also getting strict.
This is what I think right now
Although fortunately, we still have some trusted DEX if we want more decentralization.

wiss19

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Quote from: JohnBitCo on April 13, 2022, 05:05:43 AM

Government can only regulate bitcoin and crypto if you store them on centrazlied exchanges. Government can get data from these exchanges as you have done KYC on those exchanges. They can tax you on the capitical gains or crypto stored on the exchanges.
If, on the other hand, you store crypto in decentrazlied wallets and exchanges, the government and financial institutions have no access to those places and they have no control over them.

There is a fine line between making it legal and regulations. If it is legal in a nation and the regulations are laxed then you could use centralized exchanges and you could pay taxes and you could basically just accept it as it is. However, if you dislike it and think that it is not doing a good job and your government should reconsider the regulations, or even if they made it a banned thing, then you could totally consider using the decentralized places as well.

I personally like the fact that p2p is a thing even in china, where government is very harsh, which shows that people will continue to use it under even the most difficult possible situations.

tvplus006

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Quote from: Abiky on April 08, 2022, 05:15:01 PM

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated.

Behind each project, if it is not truly decentralized, like bitcoin, there is a project team, interacting with which the government can demand the information they are interested in. And given that many exchanges require KYC, then almost any coin in this case can be considered as a CBDC, which is controlled by the government.

LordShanken

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Quote from: Abiky on April 08, 2022, 05:15:01 PM

As crypto hits the mainstream, more businesses and companies are joining the game. We've seen innovations from NFTs to security tokens, and stablecoins. Most of the coins being traded on the market have smart contract functionalities, making them multi-purpose platforms for real world use. While all of this sounds nice, there's been an increasing rate of centralized exchange dominance over the past years. Not only that, but alternative cryptocurrencies (altcoins) have been prioritizing convenience on top of decentralization in order to provide people with lower fees and blazing-fast transaction confirmation times.

Most recently, Lightning Labs announced the creation of a new stablecoin that will operate in its "Taro" platform. If companies start to embrace stablecoins on top of traditional cryptocurrencies, then the whole industry will become heavily centralized. This should be a cause of concern, as a full government crackdown (or ban) could mark the end of crypto's prominence in the mainstream world.

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

We are at the stage where the mainstream and cryptocurrencies are slowly merging. If a company operates in a country where KYC is required for each client, but also operates on the cryptocurrency market, unfortunately all those who use its crypto-related services will have to undergo verification. If a company operates only on the cryptocurrency market, it only depends on it whether it wants to act anonymously or regulate its activities. Everyone will find something for himself.

jokers10

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Quote from: JohnBitCo on April 13, 2022, 05:05:43 AM

Government can only regulate bitcoin and crypto if you store them on centrazlied exchanges. Government can get data from these exchanges as you have done KYC on those exchanges. They can tax you on the capitical gains or crypto stored on the exchanges.
If, on the other hand, you store crypto in decentrazlied wallets and exchanges, the government and financial institutions have no access to those places and they have no control over them.

Crypto is not a spherical horse in vacuum so you need to interact with the world to buy something or sell something and get payment in crypto (or why do you need it else?). And when you interact with outer world your crypto addressed can be tracked. You live in the outer world as well, so government has options to make you to do what they want anyway.

JohnBitCo

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Quote from: Gayong88 on April 12, 2022, 05:27:32 AM

Quote from: Smartprofit on April 09, 2022, 04:49:31 AM

Quote from: Abiky on April 08, 2022, 05:15:01 PM

As crypto hits the mainstream, more businesses and companies are joining the game. We've seen innovations from NFTs to security tokens, and stablecoins. Most of the coins being traded on the market have smart contract functionalities, making them multi-purpose platforms for real world use. While all of this sounds nice, there's been an increasing rate of centralized exchange dominance over the past years. Not only that, but alternative cryptocurrencies (altcoins) have been prioritizing convenience on top of decentralization in order to provide people with lower fees and blazing-fast transaction confirmation times.

Most recently, Lightning Labs announced the creation of a new stablecoin that will operate in its "Taro" platform. If companies start to embrace stablecoins on top of traditional cryptocurrencies, then the whole industry will become heavily centralized. This should be a cause of concern, as a full government crackdown (or ban) could mark the end of crypto's prominence in the mainstream world.

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

Yes, I believe that centralized stablecoins are not needed by the crypto industry.

The basis of the crypto industry is the first cryptocurrency (Bitcoin). All other alternative cryptocurrencies are essentially experimental laboratories for testing new cryptographic and financial technologies. As testing progresses, the best of these technologies are incorporated into the Bitcoin code.

Previously, on cryptocurrency exchanges, altcoins were traded exclusively in tandem with bitcoins.

However, later stablecoins appeared (in particular, tether, usdt). In my opinion, this is a step backwards.

Cryptocurrency is an alternative to the modern financial system. Bitcoin is a replacement for the US dollar.

Most stablecoins are centralized. In addition, they psychologically prepare people for the adoption of Central Bank Digital Currencies (CBDCs).

Blockchain is a wonderful creation and has a promising future if innovation continues in this direction. in my opinion Crypto needs decentralization, otherwise it will soon become a tool of a large conglomerate, and then not much different from ordinary fiat currencies or other commodities. Several governments have started paying attention to crypto and are now talking about tightening regulations.

Government can only regulate bitcoin and crypto if you store them on centrazlied exchanges. Government can get data from these exchanges as you have done KYC on those exchanges. They can tax you on the capitical gains or crypto stored on the exchanges.
If, on the other hand, you store crypto in decentrazlied wallets and exchanges, the government and financial institutions have no access to those places and they have no control over them.

Ronan0521

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You are right, for example: Solana, most of nodes are owned by a few companys, and we can't join it, it is very dangerous.

perfect999

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Quote from: Coin BTC on April 12, 2022, 04:53:03 AM

Quote from: Abiky on April 08, 2022, 05:15:01 PM

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

according to those who have heard from the information, basically some crypto is classified as a truly centralized crypto, I also thought that only bitcoin and ethereum were truly decentralized. and there may also be several factors that appear to be crypto-centralized including the one I mentioned earlier namely bitcoin.

let's all hope that decentralized platforms will continue to exist and develop well, and be able to compete with centralized platforms because otherwise we will know what happened maybe crypto will slowly fall or can be said to collapse.

even if many large companies adopt, we will also not be able to escape it because the government is still in control of the company and its people. but still they don't have full control, they're just going to collect the taxes here.

Even ethereum is not really "truly" decentralized. In a way it is technologically decentralized, but there are tons o them out there if we consider that as decentralization. The problem is that Vitalik is still holding so much power, whatever he aims at would become a reality because people approve of it, like this eth 2.0 for example, he wants to do that and everyone accept it and we are going to have it.

I am not saying it is a bad idea, it is a good idea and I would accept it as well but that doesn't mean that it is not a problem when he does whatever he wants to and we all accept it. We will see how it is decentralized when one day Vitalik wants to go one direction and everyone says no.

amishmanish

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his whole discussion of crypto being decentralized and becoming centralized has been going on for long. While a newbie with little knowledge of blockchain will prefer to choose a platform that will do all the backend work of management as banks do for us, A develper who has been in crypto buissness for quite some time might prefer to manage his asstes on his own. Sadely the formers are more in numbers than the laters and in a sense . yes with crypto becoming commonplace we will see more centralization

Emitdama

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Well, I also don’t like the idea of centralization.. We already know that Bitcoin was meant to be a currency that is decentralized and same should be for altcoins. But, CEX seems to be pulling a lot of weight in the community as of recent and I don’t like it. Although I don’t think this would lead to any ban on cryptocurrency, the only thing there is that the government can decide anytime to set a tight regulation and even charge heavy taxes on cryptocurrency. Take example – India government charging 30% tax and extra 1% on transactions lol.

Gayong88

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Quote from: Smartprofit on April 09, 2022, 04:49:31 AM

Quote from: Abiky on April 08, 2022, 05:15:01 PM

As crypto hits the mainstream, more businesses and companies are joining the game. We've seen innovations from NFTs to security tokens, and stablecoins. Most of the coins being traded on the market have smart contract functionalities, making them multi-purpose platforms for real world use. While all of this sounds nice, there's been an increasing rate of centralized exchange dominance over the past years. Not only that, but alternative cryptocurrencies (altcoins) have been prioritizing convenience on top of decentralization in order to provide people with lower fees and blazing-fast transaction confirmation times.

Most recently, Lightning Labs announced the creation of a new stablecoin that will operate in its "Taro" platform. If companies start to embrace stablecoins on top of traditional cryptocurrencies, then the whole industry will become heavily centralized. This should be a cause of concern, as a full government crackdown (or ban) could mark the end of crypto's prominence in the mainstream world.

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

Yes, I believe that centralized stablecoins are not needed by the crypto industry.

The basis of the crypto industry is the first cryptocurrency (Bitcoin). All other alternative cryptocurrencies are essentially experimental laboratories for testing new cryptographic and financial technologies. As testing progresses, the best of these technologies are incorporated into the Bitcoin code.

Previously, on cryptocurrency exchanges, altcoins were traded exclusively in tandem with bitcoins.

However, later stablecoins appeared (in particular, tether, usdt). In my opinion, this is a step backwards.

Cryptocurrency is an alternative to the modern financial system. Bitcoin is a replacement for the US dollar.

Most stablecoins are centralized. In addition, they psychologically prepare people for the adoption of Central Bank Digital Currencies (CBDCs).

Blockchain is a wonderful creation and has a promising future if innovation continues in this direction. in my opinion Crypto needs decentralization, otherwise it will soon become a tool of a large conglomerate, and then not much different from ordinary fiat currencies or other commodities. Several governments have started paying attention to crypto and are now talking about tightening regulations.

Coin BTC

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Quote from: Abiky on April 08, 2022, 05:15:01 PM

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

according to those who have heard from the information, basically some crypto is classified as a truly centralized crypto, I also thought that only bitcoin and ethereum were truly decentralized. and there may also be several factors that appear to be crypto-centralized including the one I mentioned earlier namely bitcoin.

let's all hope that decentralized platforms will continue to exist and develop well, and be able to compete with centralized platforms because otherwise we will know what happened maybe crypto will slowly fall or can be said to collapse.

even if many large companies adopt, we will also not be able to escape it because the government is still in control of the company and its people. but still they don't have full control, they're just going to collect the taxes here.

jokers10

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Quote from: Pejoh Asu on April 11, 2022, 06:24:31 AM

I heard news that stable coins will soon become centralized, every transaction that occurs from real money will be converted automatically to the supply amount, of course by being centralized it makes us more secure and not afraid when there are significant market fluctuations because stable coins are guaranteed .

Most "stable" coins are centralized at the moment and from the very beginning as there is a commercial company operating each of them and deciding which "stable" coins are valid. And nothing gives a 100% gurantee, you can remember that on 23th of March Cashio Dollar stopped being "stable" and become zero at one moment.

judaspriest

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C O M B O

Satoshi created Bitcoin not to be centralized, but rather to be decentralized and used by the whole world,
yes we know that some countries prohibit the use of Bitcoin and cryptocurrencies, but that can't stop Bitcoin,
and don't forget that Cryptocurrencies are decentralized and it's forever.

Argoo

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Complete decentralization for cryptocurrency is also not very good. We have already seen an increase in fraud, default in ICOs and other harmful consequences caused by the complete lack of rules of conduct in this sector. So some regulation in the use of cryptocurrency is necessary and desirable. In addition, we all must understand that states will not allow circulation of money on their territory that they do not control in any way. Therefore, in everything you need to look for the golden mean.

Faisal2202

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Yes, Cryptoverse has almost become Centralized and this is good in some way and not good in other way, well, but the thing is, many new network/Blockchains are being introducing in the market which are not centralized infact they allow us to do the transaction totally anonymously, if i not get wrong Lighting Network for btc and alt transactions is one of them to do things without being checked by authorities.

Topic: Is crypto becoming centralized? (Read 480 times)