Topic: Is True Decentralization a Myth? (Read 372 times)

That's certainly true, mate. Considering that the world is somewhat dependent on a centralized model, many people have resorted to centralized exchanges. These same exchanges are largely dominant within the mainstream world. With unmatched liquidity and user-friendly platform, people are able to perform crypto trades without the need to worry about anything else. Of course, these centralized exchanges are prone to many risks such as hacks or theft. But most people don't seem to care about this. Even with the inception of decentralized exchanges, the centralized realm is still leading the crypto industry. This is bad since crypto was meant to overcome the middleman in the first place.

Given how big the crypto industry has grown, it's hard to be able to achieve 100% decentralization. There are too many players in the industry with a lot of power and wealth, making them hard to beat anytime soon (like Binance and Bitmain). At least, we could try our best in decentralizing the crypto realm as much as possible. The more distributed nodes there are for several cryptocurrencies on the market, the better for their decentralization. PoW-based cryptocurrencies like Bitcoin and Ethereum can be "solo mined" whenever it's possible in order to maintain their censorship-resistance. It's the best thing we could do at the moment in order to minimize risks of centralization as much as possible. But be aware that achieving 100% decentralization seems rather impossible at the moment.

Nonetheless, with the advent of dApps, DEXs, and even non-custodial mixing services, crypto could finally maintain its decentralized nature for years to come. There needs to be an effort from the developers, and community as a whole, in order to allow crypto to remain as is for the foreseeable future. Just my opinion

Bitcoin is completely decentralized,no one can control or alter its codes even if satoshi wants too but we are using exchanges,wallets and other services which all are centralized so they know who were paying bitcoins to them which makes bitcoin as pseudo-anonymous.

It varies from coin to coin. Some coins indeed are centralized in nature. Ripple is the most famous one among them. It is in top 10 and has existed for years now. Regardless of his centralized nature, the coin is being used by enterprises. It is fast and transactions are not too expensive wither. Bitcoin, on the other hand, is the number one crypto coin which is truly decentralized. Investors love this feature. Governments hate decentralized stuff.

Well, money is certainly a primary point, ask yourself a question, would you care about BTC if it had no value?

It really depends, for me decentralization exist but not in all crypto projects. Another thing is because of the SEC regulation it open up the decentralization was been broken where we can freely do everything without submitting any informations of us.

Decentralization and privacy are entirely different things.

You can use the privacy coins on the market right now to completely cover your tracks. Monero, Zcoin are a few of them.

On the contrary, projects like Chipmixer are wholly rubbish and useless. Still, if you want privacy, privacy coins are a solution, I'm sorry, but this is off the table. You can do your research.


The servers of the projects claiming to be decentralized are located in different countries. That's why they don't have their servers.

Surprisingly, someone who says these words believes in Bitcoin, if you don't believe in real decentralization, why do you follow cryptocurrencies?

I'm sorry, man, but I've got some bad news for you, there are decentralization and privacy. Please read some technical documentation before participating in the discussions here.

Due to FATF guidelines its mandatory to all exchanges to do kyc to all there users and exchanges also share there users information to other exchange for cross border payments. in thats senerio true decentralization is not achieved because of interface governments.

At least considering that there are people who care about it, decentralization is not a myth. In fact there is, but giving very little worth.
Will there be no volume, no liquidity without centralization? I don't think like you. You exclude decentralization because you are used to the centralized system.

There are two kinds of crypto currencies. One of them is centralised like Ripple and another is decentralised like Ethereum. I do not believe that decentralised coins will fully replace traditional services, but a kind of a mixture is very possible.

I have already expressed my opinion on the matter but I think again will not be superfluous. I say that decentralization is the shifting of fees for the data centers and most importantly it is shifting responsibility for possible glitches on the shoulders of the hamsters, no more, and the blockchain is getting complete control when reaching someone 51% computational power.

I don’t think that there is any system that is developed by human being that can be 100% accurate as we could still see some problems like the one you pointed out but that is not to say bitcoin is not a true decentralized coin, it may not have been 100% but to an extent still better than most of the other project that we have in the market which I never expect them to even have such thing because of the selfish interest they will always out in developing such project.

Secondly, we the later users are the ones that have even turned this around for blockchain and for the main reason the cryptocurrency was established because if not, we would not be seeing all these centralized exchanges but more of decentralized exchange.

As what you have said already, cryptocurrency have some level of centralization… Decentralization depends on how each person perceive that word. If you feel it's decentralized and if it meets your expectation of decentralization, then you can call it as decentralized. Doesn't mean that a currency is decentralized, there's no involvement of others. No. As long as there is someone higher, or someone who can control most things, and you're under it, just like the government. It's not a full decentralized system. It's like decentralization has a limitation and one part is the only one decentralized but not everything.

IMO it's not a myth. It's more likely people are not ready for.

Centralization creates volume, liquidity and so on. Not only on exchanges but in any market. That's why you have a middle-man in almost every business who makes centralization and then liquidity. At food markets, at crypto exchanges, at fiat currency exchanges, etc.

Platform evolves and we are witnessing more and more useful DApps. IMO DPapps are the 'true' future and I'm investing every free resources in it.

I believe that it is matter of time. Creators and early investors of many altcoins now hold a big portion of "their" cryptocurrencies, but they will slowly distribute coins among users because sooner or later they will be pushed to do that. Look at Bitcoin, the decentralization is growing day by day because Bitcoins are slowly distributed among all users. And if you distribute these coins in airdrop, you will get competitive advantage like Stellar did it.

Now confidentiality is at a very weak level for most coins, which say that they are private. in most cases, all transactions can be tracked

It is.
They are claiming to be decentralized storage but they keep the data on their server which is centralized, there are so many projects claimed to be a decentralized project but none of them is a true decentralized project.
a true decentralization works in the theory but not applicable in reality because the government will take a measure to get involved in it. they will not allow such a thing called pure decentralization because it might affect them.

Great analysis mate. Some of us was expecting that the 100 percent decentralization was achievable in our current financial system (*the truth its not) I think its only a part of a larger perspective, how can we achieve a complete decentralization when our financial institution, commodities etc. still rely and built on the top of a *Centralized finance  ecosystem. Let's accept the truth that Decentralization is just an alternative option of a financial governance. 

No, I don't think it's a myth.

There are hundreds of decentralized applications around. Besides, some projects offer decentralized internet, decentralized storage, and much more.

Also, privacy coins allow users to exchange completely confidential (literally) money.

I've used almost all of them, and my opinion is that everything is going well by now.

I wouldn't call it a myth, but maybe an utopia, similar to the laissez-faire (free-market) system. In this world none of the countries are using a pure free market system. The government will always find a way to interfere, some say it good and some say it bad. We don't know since we couldn't do real world experiment about it.

Ok back to the topic. Could we do this 100% decentralization things?
- Developer decentralization;
- Node decentralization;
- Miner decentralization;
- others?

Yes in theory, but not feasible in the real world environment.

Cryptocurrency with the agenda of decentralization is a myth. We can't really become decentralized.

It doesn't mean decentralization is not good but I think there is a lot of disadvantages attached to it which is why we can't fully be decentralized