Topic: What if crypto becomes centralized like the Internet in the future? - page 2. (Read 311 times)

you can not centralize everything!

in the end there will remain fully decentralized cyrptocurrencies (bitcoin) alongside fully centralized cryptocurrencies (Libra?). it has already happened too. right now we have only bitcoin that is fully decentralized then others have traces of centralization with most of the altcoins being fully centralized like ETH, XRP, BCH, BSV, ... basically most of the top coins. the problem is when they are competing against decentralization they will always fail, as it is the case of all these mentioned coins failing these days.

as for businesses i believe anything that has any connection to fiat will be fully centralized, as it is the case with all bitcoin exchanges and anything that doesn't like altcoin exchanges will become fully decentralized and any centralized altcoin exchange like Binance will disappear because they don't fit this world. and the only reason why other exchanges (with fiat) would work is that they will act as the link between the two worlds.

There are pros and cons:

Of the pros:
If the cryptocurrency takes the path of centralization, then protection against frauds awaits us, since many projects will not be able to raise funds so easily, they will be obliged to return money to investors if they cannot develop it, as additional papers will be signed and anyone can sue the developers.

But of the cons:
But as for the minuses, then everything is much worse, the state will require to pay taxes on each transaction made, you will need to provide documents to pay for something. It will not work to save or postpone something, because you will have to notify the state about it, if they don’t have it, they will have the opportunity to independently find your funds and deprive you of money through legal measures.

It is important to note though that CZ has been talking about decentralization is the future. That's why there's Binance DEX now.


This is an interesting comparison. Just like the internet, will cryptocurrencies be divided into two? One will be mainstream (centralized/government issued) and the others will be considered like the "dark web coins" (bitcoins and other non-government issued)?

There's no stopping businesses from making their own ventures within the crypto movement, as they see a great opportunity for profits. While there are many centralized services which are good, I believe that we need more decentralized solutions in order to counteract the effects of a single point of failure. Otherwise, the crypto world will be entirely dominated by big businesses, and corporations alike. When you see movements such as Facebook's Libra coin, Binance's unstoppable exchange platform, and even Bitmain's monopolistic mining operation, you get the feeling that decentralization is just a mere myth. Luckily, Satoshi designed Blockchain tech to be open source and distributed by design. This will allow people to protect the technology from malicious actors (third parties) by forking off their own cryptocurrency.

Which is why, if the entire crypto industry becomes centralized like the Internet, anyone can quickly grab Bitcoin's source code in order to design a new cryptocurrency with tighter rules that would minimize the risks of centralization in every way. With many decentralized alternatives to current services such as DEXs, atomic swaps, dApps, and even decentralized mixing services, it's the possibility of centralizing crypto becomes minimal each day. Just my opinion

We are already seeing the centralized crypto concept being initiated by big companies , governments and business houses. Mostly these centralized crypto projects are based on stable coins backed by fiat just like facebook's libra, some other companies like walmart are also working on their coin and also jp morgan wgich a bank, so they are basically meant for payments, shopping and transfers but i think these coins will not be able to compete with traditional crypto in terms of investment potential, anonymity, efficiency and global acceptance.

I think this will not happen, even this exchanges may ask you for KYC, you have a choice to use it or no, most of exchanges allow you to trade up to 2 BTC without ask about KYC.

With the ever-increasing popularity of Bitcoin and altcoins, we've seen many Blockchain businesses and startups gaining traction over the past years. Governments have taken their part in trying to regulate the crypto industry while enforcing KYC/AML laws. On the other hand, centralized exchanges are largely dominant in the industry where they have the final say of a cryptocurrency's long-term success (like Binance). Even the mining industry has become extremely centralized (Bitmain) where only a few players have control of the entire Bitcoin network.

Given the path crypto has taken, it seems to me that it's becoming closer towards full centralization in the same way the Internet did a while ago. The Internet once started to be decentralized, but then became largely dominated by big companies with a lot of power. Now, the Internet is not decentralized as it used to be, and crypto might be headed towards the same path. Everything will depend on the people themselves, whenever they will allow this to happen or not. It's hoped that crypto remains as decentralized as possible in order to fulfill Satoshi's vision within the mainstream world.

Nonetheless, what are your thoughts about this?