Is crypto becoming centralized? - page 2.

darewaller

hero member

Activity: 2926

Merit: 640

Quote from: Ziskinberg on April 11, 2022, 06:48:24 AM

Bitcoin is decentralized in nature and we can't deny that but we are talking about crypto in general where many of these new projects has already been controlled by whales, they are now manipulating the market trend, volume, and also the news. Maybe, for now, we can just say that crypto is still decentralized but sooner or later, as there is a massive growth of manipulations, this will change the system, and become centralized.
Objections are somehow useless, whales will take control of the market while investors will just ride the trend and hypes.

The manipulation by whales on the big projects is still understandable. I mean it is their money and they are risking their own money to control something which is totally understandable and that's okay. However, the project creators end up doing something that is a bit more shady these days by making it heavily centralized.

I mean look at Avax right now, could you say Emin has no say in it? Dude is basically "owner" of avax, or look at SOL, everyone loves it, and then you look at it and see they can freeze the network whenever they want. So all in all I would have say that it is not really as cool as you may imagine, it is quite centralized these days.

lanuna_finance

copper member

Activity: 12

Merit: 0

Quote from: Abiky on April 08, 2022, 04:15:01 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.

Crypto must be decontralized

Abiky

legendary

Activity: 3220

Merit: 1363

www.Crypto.Games: Multiple coins, multiple games

Quote from: Naficopa on April 08, 2022, 05:25:20 PM

I also noticed the same. Unfortunately, if someone wants to operate in the open mainstream and in the world of cryptocurrencies, he must undergo regulation and require KYC verification to function legally. However, the cryptocurrency market is constantly evolving, so I think many companies will only operate in the cryptocurrency market and they will avoid regulation and operate anonymously. I think that everyone will find something good for themselves. It's just that everyone will take a piece of the cake for themselves, but it looks like regulated companies are taking more and more of it.

There are always some hurdles when you want to go through the "legal" route. Regulations will force businesses and companies to comply with KYC/AML laws or face serious consequences in the long run. It'll be up to the person himself to choose an alternative that's decentralized by design. Such an alternative would be "impervious" against regulations, making it a "safe-haven" for people seeking an "escape route" from government surveillance.

While increasing centralization is a concern, there's still hope thanks to the way crypto/Blockchain tech was designed. There only needs to be one decentralized cryptocurrency for Satoshi's vision to be fulfilled. As long as the community preserves Bitcoin's decentralization, nothing else matters. Just my thoughts Grin

calya

sr. member

Activity: 784

Merit: 250

Quote from: yazher on April 10, 2022, 03:48:53 PM

Looks like we are heading towards that kind of future which is kinda different from what we are looking for because one of the financial freedom features is to have a privacy regarding transactions. We still have projects that continues providing it but due to some kind of trust matter they remained underrated and lack of popularity.

privacy now not be main priority again for cryptocurrency, maybe at early time while crypto booming everyone talking about decentralized and privacy which is could not track by bank. but now since blockchain technology technology growth massively and adoption happen in any field, privacy coins as if be ignored.

TheGreatPython

sr. member

Activity: 2660

Merit: 339

Quote from: MFahad on April 09, 2022, 07:56:14 PM

Theain purpose of Crypto was decentralization but there is some drawback and I think it's good for Crypto to be centralized. Hacking and stealing is more in Decentralized system because it's difficult to trace the stealer there. Axie Stealer still holding stolen money but no one can trace who did that.
Many countries looking to legalize the Crypto and add tax on crypto which is not possible in decentralization so they will go for centralized system and regret that the Future be of crypto is looking fully centralized.

But, most of the hackers you’re talking about are being caught Roll Eyes

. We have seen news about several of them that were caught as of recent. So, I don’t really think that cryptocurrency covers them for doing such. Take for example the ones that hacked Twitter, it didn’t take long before they were all caught.

But, I do understand your concern. A lot of people always feel that there is the possibility of decentralized coins currency used for illicit activities and all manner of wrong doings on the dark web. So centralization might fix these. Although I don’t think that would even be a solution.

Ziskinberg

hero member

Activity: 3010

Merit: 666

Quote from: Cosmic Beyonders on April 11, 2022, 06:30:53 AM

BTC in my opinion now there are many big holders they can manipulate the market but still it is Decentralized and it mean that what you hold that you own and you are responsible for its future value but now whales are trying to control which is in current situation looking that they have done alot but for the future there no any chances for this Objection

Bitcoin is decentralized in nature and we can't deny that but we are talking about crypto in general where many of these new projects has already been controlled by whales, they are now manipulating the market trend, volume, and also the news. Maybe, for now, we can just say that crypto is still decentralized but sooner or later, as there is a massive growth of manipulations, this will change the system, and become centralized.
Objections are somehow useless, whales will take control of the market while investors will just ride the trend and hypes.

Cosmic Beyonders

member

Activity: 84

Merit: 75

UCT (United Crowd)

BTC in my opinion now there are many big holders they can manipulate the market but still it is Decentralized and it mean that what you hold that you own and you are responsible for its future value but now whales are trying to control which is in current situation looking that they have done alot but for the future there no any chances for this Objection

Pejoh Asu

sr. member

Activity: 1484

Merit: 254

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 .

jokers10

legendary

Activity: 1974

Merit: 3049

Quote from: Xal0lex on April 10, 2022, 03:36:45 PM

I think it is a conflict of interest. In all respects, cryptocurrency is better than the old banking system, but because of the use of leverage and restrictions by governments and banks, cryptocurrency will try to be as similar as possible to banking, with the same centralization, regulation, and ability to impose sanctions on assets. I understand that the nature of cryptocurrency excludes all these methods that come from traditional finance, but an unregulated and decentralized cryptocurrency threatens this whole system, so they will try all kinds of methods to break and restrain it, centralizing and de-anonymizing crypto users as much as possible. Look at the latest trends: continuous bans, legislation on disclosure of information about crypto users, leaks of data from exchanges to governments, expansion of regulation and taxation. It's just like the banking sector.

Yes, I understand that. And exactly those restrictions, regulations and attempts to centralize crypto show that crypto is a real possible alternative to traditional system. And traditional system doesn't want to lose control under entire financial situation. That's why it tries to restrict and to integrate and centralize all what it can: because centralized crypto has no sense and would fail. Crypto is not faster or easier than online banking, harder to pay than bank cards, etc. It's decentralization and independence is what giving it own advantages to develop, as a competitive alternative.

yazher

hero member

Activity: 2268

Merit: 588

You own the pen

Looks like we are heading towards that kind of future which is kinda different from what we are looking for because one of the financial freedom features is to have a privacy regarding transactions. We still have projects that continues providing it but due to some kind of trust matter they remained underrated and lack of popularity.

Xal0lex

staff

Activity: 2436

Merit: 2347

Quote from: jokers10 on April 10, 2022, 07:58:02 AM

Quote from: Xal0lex on April 10, 2022, 02:29:13 AM

Full decentralization is more of a myth than a reality. Even decentralized services are essentially centralized, and they are subject to regulators, they block access to different jurisdictions. So what kind of decentralization can there be after that? The crypto industry is slowly coming to full centralization. More than 100 countries in the world have already adopted the necessary regulatory and tax laws to help the crypto industry. Now there is a trend to de-anonymize all transactions that exceed a certain limit. KYC and AML are everywhere, exchanges are cooperating with governments, Chainalysis has learned to track addresses and belonging to a certain geolocation and identity.

This is the future of the crypto industry, complete control and regulation.

Why then can it be needed if bank system is faster, is widely adopted, is easier to use? If crypto becomes centralized it'll stop being an alternative to centralized bank system and will lose all advantages it has. CBDC is not crypto and would be just a little branch of fiat system. Crypto can be decentralized only, all it's sense is to be an alternative financial system where everyone can manage their money by own will.

I think it is a conflict of interest. In all respects, cryptocurrency is better than the old banking system, but because of the use of leverage and restrictions by governments and banks, cryptocurrency will try to be as similar as possible to banking, with the same centralization, regulation, and ability to impose sanctions on assets. I understand that the nature of cryptocurrency excludes all these methods that come from traditional finance, but an unregulated and decentralized cryptocurrency threatens this whole system, so they will try all kinds of methods to break and restrain it, centralizing and de-anonymizing crypto users as much as possible. Look at the latest trends: continuous bans, legislation on disclosure of information about crypto users, leaks of data from exchanges to governments, expansion of regulation and taxation. It's just like the banking sector.

jokers10

legendary

Activity: 1974

Merit: 3049

Quote from: Xal0lex on April 10, 2022, 02:29:13 AM

Full decentralization is more of a myth than a reality. Even decentralized services are essentially centralized, and they are subject to regulators, they block access to different jurisdictions. So what kind of decentralization can there be after that? The crypto industry is slowly coming to full centralization. More than 100 countries in the world have already adopted the necessary regulatory and tax laws to help the crypto industry. Now there is a trend to de-anonymize all transactions that exceed a certain limit. KYC and AML are everywhere, exchanges are cooperating with governments, Chainalysis has learned to track addresses and belonging to a certain geolocation and identity.

This is the future of the crypto industry, complete control and regulation.

Why then can it be needed if bank system is faster, is widely adopted, is easier to use? If crypto becomes centralized it'll stop being an alternative to centralized bank system and will lose all advantages it has. CBDC is not crypto and would be just a little branch of fiat system. Crypto can be decentralized only, all it's sense is to be an alternative financial system where everyone can manage their money by own will.

kidbounty

full member

Activity: 1064

Merit: 101

HELENA

Quote from: Abiky on April 08, 2022, 04:15:01 PM

Do you think ever-increasing centralization is a cause of concern?

no, because as long as there are coins like bitcoin, monero, and other coins that still use POW. centralization is just a complement in the crypto space. I don't think centralization is bad, because we still need it. without the help of a centralized system, crypto would not develop as rapidly as it is today.

Quote from: Abiky on April 08, 2022, 04:15:01 PM

What would be the impact of tightening regulations over the entire crypto/Blockchain space?

The impact I feel the most is taxes. because the main purpose of regulation is tax. adoption drives regulation and eventually crypto will be controlled. in the future crypto will not truly become decentralized as regulation will govern the crypto space.

Quote from: Abiky on April 08, 2022, 04:15:01 PM

Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

even though the regulations are getting stricter, crypto is still surviving. but what worries me is whether the hype will be the same as it is now?. crypto is noticed by the whole world today because of its decentralization. but if regulation could make crypto centralized, it would make the crypto space very different.

Xal0lex

staff

Activity: 2436

Merit: 2347

Full decentralization is more of a myth than a reality. Even decentralized services are essentially centralized, and they are subject to regulators, they block access to different jurisdictions. So what kind of decentralization can there be after that? The crypto industry is slowly coming to full centralization. More than 100 countries in the world have already adopted the necessary regulatory and tax laws to help the crypto industry. Now there is a trend to de-anonymize all transactions that exceed a certain limit. KYC and AML are everywhere, exchanges are cooperating with governments, Chainalysis has learned to track addresses and belonging to a certain geolocation and identity.

This is the future of the crypto industry, complete control and regulation.

TheUltraElite

legendary

Activity: 2898

Merit: 1253

So anyway, I applied as a merit source :)

Mainstream attention and adoption is crypto does not change the algorithm of how blockchain works, aka does not equal to centralization. Saying so would be an oversimplification of the gradual interest growing in crypto. Is that not what majority of the folks here wanted long back? They are now seeing the prices of held crypto going up and they are happy about it.

If someone creates a new centralized currency system then it is the people's choice to invest in, it does not change bitcoin. People prefer speed and ease of use, so if they see a centralized system having better results, they will stick to it. In that way crypto will remain a niche sector. But we want more adoption into public, so this is a compromise that has happened, but it does not mean it is becoming centralized.

Dr.Osh

legendary

Activity: 2758

Merit: 1004

Buzz App - Spin wheel, farm rewards

well, no wonder they tried to build a centralized system when decentralized systems became so popular. however, whatever system they make, people's views of cryptocurrency only focus on bitcoin, and bitcoin is a crypto that has a decentralized system. and I agree, they are trying to make a centralized system with the aim that they can control the movement of the economy in matters of taxes, fees, markets, and others.
however, the repercussions of this can be both good and bad. when people know that many cryptos have a centralized system, I think many people who used to hate crypto will come back, even new investors will come too. however, this all challenges the principle of crypto which has been decentralized from the start. it's just that, I think the decentralized system still survives because that's basically what crypto is, even when they make regulations of any kind. that won't let them rule out that bitcoin is the crypto at the top.

fauzan Ichsan

full member

Activity: 1246

Merit: 102

Enterapp Pre-Sale Live - bit.ly/3UrMCWI

Quote from: MFahad on April 09, 2022, 07:56:14 PM

Theain purpose of Crypto was decentralization but there is some drawback and I think it's good for Crypto to be centralized. Hacking and stealing is more in Decentralized system because it's difficult to trace the stealer there. Axie Stealer still holding stolen money but no one can trace who did that.
Many countries looking to legalize the Crypto and add tax on crypto which is not possible in decentralization so they will go for centralized system and regret that the Future be of crypto is looking fully centralized.

indeed many countries object to the decentralization system, because they cannot control it. on the other hand, even though they have not legalized cryptocurrencies, many countries have implemented tax rules, although it is still difficult to make complaints, for example the problem of asset theft. even though crypto is centralized, but at least it has a clear supply, which is better than fiat, which can print money continuously which eventually leads to higher inflation.

dansus021

copper member

Activity: 2156

Merit: 983

Part of AOBT - English Translator to Indonesia

Yes and no in some blockchain like smart chain the validator is only 21 i think is become more centralized but other chain still 51% attack proof

GreatArkansas

legendary

Activity: 2506

Merit: 1394

Quote from: Abiky on April 08, 2022, 04:15:01 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.

Yes for me, very alarming especially the volume or market cap in cryptocurrency is slowly increasing also the number of people also using cryptocurrency is increasing too.
Common concerns here are the hacks, rugged projects some insiders,s or issues because it is centralized, and there is an entity that controls it.

ItsNotSean

member

Activity: 70

Merit: 12

Crypto is not becoming more centralized.

Investors/users/the public are embracing more centralized blockchain protocols and investments.

On the retail side they're choosing speed, price and less responsibility. The institutional side is choosing all that as well as being additionally motivated by threats of governmental oversight.

There are decentralized (or perhaps "less centralized") options to choose from, but they are nowhere near as popular (by MC and TVL) at this stage. Decentralized networks will always take longer to execute, and require much more personal responsibility and accountability on behalf of users. It has only taken a single, greedy mistake to transform a decentralized, crypto-libertarian into a CeFi statist.

Whether or not the original raisons d'etre for cryptocurrencies is ever fulfilled is, as yet, an open question. "We, the people" are the ones who will provide the answers, and those answers are increasingly "CeFi > DeFi".

Topic: Is crypto becoming centralized? - page 2. (Read 499 times)