Why decentralization is so important for crypto?

Slava79

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¯\_(ツ)_/¯

Quote from: chimcoin on December 14, 2017, 02:35:56 PM

Finally, it obvious that without decentralization, there will be no cryptocurrency.

I agree, it seems so, but not necessarily true. If some reputable enough entity would be able to guarantee independence without decentralisation, wouldn't it count as a currency?

chimcoin

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In addition to Bitcoin decentralization, Bitcoin's most important features—and perhaps its true core innovation—is its decentralized structure. Bitcoin has no central control: no central repository of information, no central management, and, crucially, no central point of failure. Finally, it obvious that without decentralization, there will be no cryptocurrency.

ace9989

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Quote from: eternalgloom on December 13, 2017, 11:12:45 AM

Yes, decentralization is important for Bitcoin because the reasons you've listed.

Bitcoin could be easily taken down by governments if it wasn't decentralized, it's comparable to the torrent protocol in that way.

This doesn't mean that there isn't centralization within the Bitcoin ecosystem, most people choose to exchange Bitcoin for fiat and altcoins through centralized exchanges.
But as a user you're not forced to make use of any centralized infrastructure, you can easily just use the blockchain for p2p transactions.

Here's a pretty good article from Erik Voorhees about the matter:
https://bitcoinmagazine.com/articles/bitcoin-truly-decentralized-yes-important-1421967133/

THanks for this it helps me ill read the article later !:)

jacaf01

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The revolutionary trading ecosystem

I don't think people do valued decentralisation as people make it to be, new set of people entering the space are after profit, what people are after is money which Bitcoin has given most of the early adopters.

Slava79

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Quote from: Vatimins on December 14, 2017, 10:24:17 AM

The question you gave really poked my curiosity...

Thank you, good to know my thinking finds response in other people's minds, so to speak )

You see what I mean, decentralization is just a tool selected by Satoshi to achieve independence from the government institutions. As for me, instead of "decentralization", which is just a tool, would be more correct to use "independence" word.

People need independent currency, not necessarily decentralized, isn't this assumption correct?

When Bitcoin whitepater was published, Tor/Onion services were in their infancy, not really widely used. Who knows, would Nakamoto selected onion routing to achieve independence instead of decentralization otherwise?

Wouldn't such a currency be more independend then some of the DAG based currencies from the top 50?

Muhammad Muneeb

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decentralization is the most important feature of cryptocurrency like you have listed and otherwise any government would control and track or tax the crypto transaction so what difference will it make from fiat? it will be not possible to regulate the decenteralized crypto

romero121

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If this had functioned under a centralized system, now Satoshi or the key person could have earned bigger than Bill Gates and other billionaires. Being a decentralized system, it gives access to common people and it serves as freedom to the people who use it in one or the other way.

ozaeri

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Nana_Marini

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Quote from: Slava79 on December 13, 2017, 10:42:30 AM

Seriously, what's all this decentralization thing about?

I can see 2 reasons:

1. Central server can become dishonest.
2. Central server can be taken down by gov.

But, isn't 1. applies to some cryptocurrencies also (the ones from top 20 in coinmarketcap, I will not call the names here).

So, if 2. is addressed in some way, 1. is not that important for a cryptocurrency to be successful, right?

Then, isn't having "blockchain" and "whitepaper" is more a cargo cult in many situations? There really could be a central server with some gamification for users (mining, rewards, marketplace etc) and if it is build in a way it can't be blocked (not to discuss here how), it can be called a currency and it's perfectly fine?

Or am I all the way wrong? )

All rigt guys. I think decentralitation is important for development of bounty. Decentralitation system make transaction is an easy choice

marks1976

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Quote from: Slava79 on December 13, 2017, 10:42:30 AM

Seriously, what's all this decentralization thing about?

I can see 2 reasons:

1. Central server can become dishonest.
2. Central server can be taken down by gov.

But, isn't 1. applies to some cryptocurrencies also (the ones from top 20 in coinmarketcap, I will not call the names here).

So, if 2. is addressed in some way, 1. is not that important for a cryptocurrency to be successful, right?

Then, isn't having "blockchain" and "whitepaper" is more a cargo cult in many situations? There really could be a central server with some gamification for users (mining, rewards, marketplace etc) and if it is build in a way it can't be blocked (not to discuss here how), it can be called a currency and it's perfectly fine?

Or am I all the way wrong? )

It looks the first reason alreayd applied into the cryptocurrency that already applied non based blockchain application. And it has used the server just like a miners.
But for the second reason and it's quite understanable just like how the centralized exchange can be blocked or even banned by the government. This is why the decentralization is everything.

drunkcoin

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The author answered why it's important. Yes, it's made in case the server will be down or corrupted by someone. Decentalization guarantees that all the data will be secured.

CoPil

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Quote from: Slava79 on December 13, 2017, 10:42:30 AM

Seriously, what's all this decentralization thing about?

I can see 2 reasons:

1. Central server can become dishonest.
2. Central server can be taken down by gov.

But, isn't 1. applies to some cryptocurrencies also (the ones from top 20 in coinmarketcap, I will not call the names here).

So, if 2. is addressed in some way, 1. is not that important for a cryptocurrency to be successful, right?

Then, isn't having "blockchain" and "whitepaper" is more a cargo cult in many situations? There really could be a central server with some gamification for users (mining, rewards, marketplace etc) and if it is build in a way it can't be blocked (not to discuss here how), it can be called a currency and it's perfectly fine?

Or am I all the way wrong? )

I agree. Decentralization gives the currency a freedom. Freedom from taxes, freedom from the authorities. It very important because "autonomy" is the best asset as to why digital currencies especially Bitcoin gained popularity and merit to people.
If it will be 'totally' centralized, what is its difference to our typical centralized currencies?

KuromaYoichi

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Quote from: Slava79 on December 13, 2017, 10:42:30 AM

Seriously, what's all this decentralization thing about?

I can see 2 reasons:

1. Central server can become dishonest.
2. Central server can be taken down by gov.

But, isn't 1. applies to some cryptocurrencies also (the ones from top 20 in coinmarketcap, I will not call the names here).

So, if 2. is addressed in some way, 1. is not that important for a cryptocurrency to be successful, right?

Then, isn't having "blockchain" and "whitepaper" is more a cargo cult in many situations? There really could be a central server with some gamification for users (mining, rewards, marketplace etc) and if it is build in a way it can't be blocked (not to discuss here how), it can be called a currency and it's perfectly fine?

Or am I all the way wrong? )

The biggest reason is one, centralization can become dishonest in the longrun and they can make whatever decision that they want and they can manipulate a lot of things because they have the authority, that's why some exchange can block account etc. With decentralization everything can be fair and give benefit to all parties.

Vatimins

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Quote from: Slava79 on December 13, 2017, 12:05:22 PM

Thank you all for your answers (eternalgloom: I'm reading the article)

But, nevertheless, I don't have clear understanding (maybe it's me).

Being a developer, I'm trying to think in terms of technical requirements and how could I accomplish them.

Requirement: As a user, I want to trade my currency freely, not having any government interruptions, not having to pay taxes etc.

Implementation:

Proposal 1: lets implement decentralized p2p network with proof of work => Bitcoin

Proposal 2: lets wire up a bunch of anonymous Tor services (for example) and serve user requests there.

Wouldn't p.2 work as good as p.1?

The question you gave really poked my curiosity. Haven't really thought about that yet until now that i have read your post. It surely is difficult to grasp block-chain and the real purpose or should i say the epitome of all the great things about crypto currencies(having profits as an exception) which is the decentralization of these tokens or coins. But what I'm sure of is that both ppints you have mentioned are very very important to most of us here.

Now, on this quoted post from you, i am pretty interested. This might reqlly work. I ain't a techy person but i think i get the idea. This would be a pretty nice start for a plan to make another token or coin that is different. Something that is with a purpose of being something useful and solves problems compared to other tokens or coins driven by profit alone or greed.

Tidsdilatation

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Decentrilazation is very important becourse:
1. The world is becomming one big country. In 100 years there wont be countries. There will be earth. And Mars. We need one currency that cannot be controlled by a dominant party.
2. Ppl start loosing trust in the big partys of the world today. One more crash and the whole system is unrepairable again.

I think these are the two most important points.

CONTRACT

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Bitcoin was not the first crypto currency, search the Internet for a story about Liberty e-currency, and get why now the topic of decentralization is so important

JanpriX

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Without the feature of being decentralized, people will not use cryptocurrency in the first place. People will shy away from it and would not even bother to bat an eye for it if the so-called cryptocurrency don't have any decentralized feature. It is being accepted by the masses now because of the fact that the government doesn't have any control for it. They can't manipulate it for their own greed and people will be able to avoid the tax payment that are just used for corruption.

People want to have the free will on how to use their cryptocurrency without the interference of peeps from the government bodies.

serian

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Decentralization one of the main thing in crypto. As you already mentioned centralized system can be easily shutdown or controlled. Crypto also can be censorship resistant and anonymous such like Monero/PIVX.

jekjekman

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A decentralized digital money is the best money that has ever been created IMO.

Money is money and there is a saying that 'Money is the root of all evil' so having a group people controlling on a specific cryptocurrency maybe safe for the mean time but if the value grows just like what happened already to Bitcoin then there is a tendency that one person to that group would think of an evil deed just like what a typical politician that steals funds from the government projects.

Slava79

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¯\_(ツ)_/¯

Thank you all for your answers (eternalgloom: I'm reading the article)

But, nevertheless, I don't have clear understanding (maybe it's me).

Being a developer, I'm trying to think in terms of technical requirements and how could I accomplish them.

Requirement: As a user, I want to trade my currency freely, not having any government interruptions, not having to pay taxes etc.

Implementation:

Proposal 1: lets implement decentralized p2p network with proof of work => Bitcoin

Proposal 2: lets wire up a bunch of anonymous Tor services (for example) and serve user requests there.

Wouldn't p.2 work as good as p.1?

Topic: Why decentralization is so important for crypto? (Read 300 times)