Why it is said that bitcoin is centralized?

stdset

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Quote from: fitty on April 08, 2017, 03:50:40 AM

So, does that mean that ETH will soon overpower Bitcoin and may even surpass its price? Yeah it's true, Bitcoin has become centralized since the main control is in the miners.

Current deadlock in Bitcoin scaling debate shows that Bitcoin isn't centralised. If either party would be in control of Bitcoin their favourite solution would be deployed long ago. On the other hand ETH is centralised. Weak opposition that was present left entirely to ETC.

Additionaly. Let's recollect why Bitcoin, blockchain were invented? Blockchain exists to prevent things like arbitrary money supply changing, arbitrary accounts freezing and seizures. ETH did exactly what blockchain is supposed to prevent people from doing. Of course the original chain survived (that's by design, original chain survives as long as it has at least few supporters), but it has much less support than the fucked chain, what questions the very sense of cryptocurrencies existence.

So ETH in essence is already a fiat currency, but it has appearance of a crypto. Nonetheless sooner or later it's gist will become more evident.

Let's ask ourselves what changes if ETH switches from blockchain to a PostgreSQL database hosted by Ethereum Foundation? Smartcontracts will be easier to develop, no need to run heavyweight fullnodes. Almost any hack can be easily reverted. Everything will become easier, better than it's now, except one thing: ETH would loose appearance of a crypto.

fitty

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Quote from: andron8383 on April 06, 2017, 03:17:36 PM

Bitcoin have centralized mining indjustry.
Bitmain is making 70% of Asics and controls mining.
As he get a lot of power it refuse any changes that would harm his earnings .
But we see that now ETH is getting like 80% of $$$ from mining .
In long run people will muve to mosre advanced coin that is Etherum but miners don't give a fuck to that they want get more fish by draining lake.

look like ETH is winnin at BTC civil war

https://bitinfocharts.com/comparison/transactions-btc-eth-dash-ltc.html

BTC fall in transaction while ETH have sustain rise in transactions.
Free market works and spoken.

So, does that mean that ETH will soon overpower Bitcoin and may even surpass its price? Yeah it's true, Bitcoin has become centralized since the main control is in the miners. Huge companies that mine Bitcoin has the power whether to change the protocol of that Bitcoin or not. I believe they are also the Whales that controls the price of Bitcoin in the market. And, they are in connection with the Bitcoin core team which are the most powerful individuals. They hold the decision whether change in Algo or protocol.(but it needs the approval of the majority before making a step)

hankyulpark

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When they talk that BTC is centralized, they are talking about the "war" between miners and the rest (exchanges, users). Because all changes have to be accepted by a majority of nodes running the protocol, and the majority of these nodes today are miner-related, it looks like that a few people control BTC itself.
In the original concept, the nodes would be spread around the world. Sadly, this is not happening right now.

andron8383

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Bitcoin have centralized mining indjustry.
Bitmain is making 70% of Asics and controls mining.
As he get a lot of power it refuse any changes that would harm his earnings .
But we see that now ETH is getting like 80% of $$$ from mining .
In long run people will muve to mosre advanced coin that is Etherum but miners don't give a fuck to that they want get more fish by draining lake.

look like ETH is winnin at BTC civil war

https://bitinfocharts.com/comparison/transactions-btc-eth-dash-ltc.html

BTC fall in transaction while ETH have sustain rise in transactions.
Free market works and spoken.

Beta-coiner1

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Quote from: croutonhexagon on October 03, 2016, 03:45:16 AM

Wrong, bitcoin is not centralised but it's opposite of that. Bitcoin us decentralised which means no other 3rd party can alter the bitcoin network and government could also can't impose tax on bitcoin. All I know is bitcoin is automated and no one can change the system.

Exactly my thought. It's decentralised. From what I always understood is that it's in a way free - like the internet.
But, just like the "free" internet, governments are trying their best to control it, to control users, and to impose some kind of tax for work they did not do.

mkmdoc

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Quote from: croutonhexagon on October 03, 2016, 03:45:16 AM

Wrong, bitcoin is not centralised but it's opposite of that. Bitcoin us decentralised which means no other 3rd party can alter the bitcoin network and government could also can't impose tax on bitcoin. All I know is bitcoin is automated and no one can change the system.

Yes, Bitcoin is opposite to centralized always because no has any authority on bitcoin, that's why it is called as people money. Governments are not accepting it because they cannot control the bitcoin and transactions.

jeen5

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i think; because most programmers and investors gathered at this center with the volume. actually they can't bitcoin be nothing without other instruments. the value of bitcoin may fall, but he will always be guiding the chains holding and the system.

Syke

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Quote from: fitty on April 01, 2017, 10:44:54 PM

Quote from: croutonhexagon on October 03, 2016, 03:45:16 AM

Wrong, bitcoin is not centralised but it's opposite of that. Bitcoin us decentralised which means no other 3rd party can alter the bitcoin network and government could also can't impose tax on bitcoin. All I know is bitcoin is automated and no one can change the system.

Yes Bitcoin is decentralized, anyone or the majority can decide whether they want to change protocol in Bitcoins Algorithm if necessary. But, it is still up to the Bitcoin Core Developers to execute those changes if they want it or not.

Quote

[T]here is a discrepancy between those who can provide input to the project (the community at large) and those who have the ultimate call as to where the project is going. Indeed, while anyone is entitled to submit changes to the software (such as bug fixes, incremental improvements, etc.), only a small number of individuals (the core developers) have the power to decide which changes shall be incorporated into the main branch of the software.

(c) https://www.cryptocoinsnews.com/bitcoin-highly-centralized-network-says-harvard-researcher/

That "main branch" is only for that individual project. They have no control over what people choose to run. Many users run Bitcoin projects that are unrelated to the Core project.

TIDOVEE

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Ofcourse, to the technologically under developed area and the non computer literates and other iliterates how ever, it could be centralized. To the users, we understand the decentralisation is more about its appearance and efficiency reaching many 'developed' countries.

fitty

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Quote from: croutonhexagon on October 03, 2016, 03:45:16 AM

Wrong, bitcoin is not centralised but it's opposite of that. Bitcoin us decentralised which means no other 3rd party can alter the bitcoin network and government could also can't impose tax on bitcoin. All I know is bitcoin is automated and no one can change the system.

Yes Bitcoin is decentralized, anyone or the majority can decide whether they want to change protocol in Bitcoins Algorithm if necessary. But, it is still up to the Bitcoin Core Developers to execute those changes if they want it or not.

Quote

[T]here is a discrepancy between those who can provide input to the project (the community at large) and those who have the ultimate call as to where the project is going. Indeed, while anyone is entitled to submit changes to the software (such as bug fixes, incremental improvements, etc.), only a small number of individuals (the core developers) have the power to decide which changes shall be incorporated into the main branch of the software.

(c) https://www.cryptocoinsnews.com/bitcoin-highly-centralized-network-says-harvard-researcher/

VictoriaWessel

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I though that bitcoin is not centralized, and considered this as one of its advantages. Problems associated with bitcoin centralization are not global, but nevertheless can be discussed at http://essay-writing.company/

croutonhexagon

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Wrong, bitcoin is not centralised but it's opposite of that. Bitcoin us decentralised which means no other 3rd party can alter the bitcoin network and government could also can't impose tax on bitcoin. All I know is bitcoin is automated and no one can change the system.

royalfestus

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Quote from: cannonballsontherun77 on September 01, 2016, 05:07:52 PM

Bitcoin is not centralized "per se"; however, it is centraly managed by a select few insiders who don't want to open the doors to the masses or upgrade Bitcoin's dilapidating infrastacture. Without increasing the maxium "Block Hieght" (Currently set to a 1Mb) Bitcoin will start to fail in the next 5 years.

In 5 years? that you know. A love to Doubt it.

Mashuri

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Much ado about nothing. Miners, especially ASIC miners, are captive to the users. One simple hard fork to a new POW and all that equipment instantly becomes worthless. We want the most efficient miner in the most efficient locations. Paul Sztorc does a great job dispelling this miner centralization FUD: https://www.youtube.com/watch?v=91TufmffIDg

Dizaster2015

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At the moment, the government influence in cryptocurrency still not so great. And it is too early to talk about centralization. Yes, a number of countries have developed laws that control this phenomenon . But this is still not the idea embodied in the life

TransaDox

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Quote from: European Central Bank on September 16, 2016, 06:02:17 PM

because it is? anyone who says anyone who can offer a bip is a little bit delusional. check the reception people outside the inner circle get. their ideas are guaranteed to be picked apart.

you can say that people can go elsewhere and mine but most people are too lazy and there's always that 'you first' mentality. what keeps it going is the idea that it is decentralized and in theory it is. the reality? hmm...

It's not only the development. Mining is the thing that makes bitcoin work and it has now coalesced into into a small number of of very large operations with a high barrier to entry. Eventually there will be just one where the electricity is cheapest.

European Central Bank

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because it is? anyone who says anyone who can offer a bip is a little bit delusional. check the reception people outside the inner circle get. their ideas are guaranteed to be picked apart.

you can say that people can go elsewhere and mine but most people are too lazy and there's always that 'you first' mentality. what keeps it going is the idea that it is decentralized and in theory it is. the reality? hmm...

royalfestus

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I cant just imagine if one of the digital currency is not centralized with the growth of alternative coin. I believe just like other currency, centralization helps to maintain its value and also check it. Dollar is a centralized currency to all other currency, same is what bitcoin serves. bitcoin security status and cap value will help it for a longer period

unindentified

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Everything centralized becomes later decentralized repeating the cycle. Often centralization is solution for decentralized schemes and decentralization is often solution for centralisation, in this article borderline is not defined at all. None of them will ever work perfectly without each other. How about internet as one big network? Is the internet centralized or decentralized? It really depends on the view or specific definition/meassure, you could prove both. The same is for bitcoin. Everybody can explain why bitcoin is technically decentralized but few would discuss about social aspect of centralization of ressources and how decentralized bitcoin could (or already is) become centralized.

This is good link (Chapter 2. Decentralization and environmental issues)

ekoice

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Mining is mostly done in china nowadays it gives miners a liitle bit control but not total control over bitcoin

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