Is there decentralization in cryptocurrency world?
Most crypto projects must have the word "decentralized" on their website and it does not matter that it is not supported by anything, but it is this word that is most associated with the crypt.
Let's see if there is real decentralization in crypto?
Bitcoin is considered the most decentralized asset, but it depends on miners - a small group of people who are mostly located in the US.
If the States decide to ban miners, then this will affect the price of BTC. Over time, the exchange rate will stabilize, but we have seen a similar situation in China.
Ethereum - after the transition to PoS, it will become even more centralized. 50% of hosted Ethereum nodes are on Amazon Web Service (AWS)! And 66% of validators are subject to US jurisdiction.
Crypto market regulations can force Ethereum validators to ban “unfriendly” transactions. Why not centralization?
Uniswap / AAVE / Compound / dYdX are top DeFi projects in terms of users and liquidity that set the brand for the market.
And even they are centralized and can ban: an interface for certain IPs, suspicious addresses, assets... The cases are isolated, but their very fact already casts doubt on decentralization.
L1 blockchains - SOL can simply be turned off, AVAX, NEAR have the bulk of the coins in the hands of the team. BNB does not hide the fact that they are centralized and subject to the rules of international sanctions.
Stablecoins - USDT / BUSD / USDC are completely centralized, since each has one issuer. USDT/USDC have already banned 50-500 addresses.
Conclusions :
Decentralization in its purest form is an idea that the crypto industry aspires to but will never achieve.
The decentralization of a project can be judged by its most centralized part.
However, in some cases, projects with one main body develop faster and solve problems more easily: Binance, stablecoins, L1 blockchains
Most crypto projects must have the word "decentralized" on their website and it does not matter that it is not supported by anything, but it is this word that is most associated with the crypt.
Let's see if there is real decentralization in crypto?
Bitcoin is considered the most decentralized asset, but it depends on miners - a small group of people who are mostly located in the US.
If the States decide to ban miners, then this will affect the price of BTC. Over time, the exchange rate will stabilize, but we have seen a similar situation in China.
Ethereum - after the transition to PoS, it will become even more centralized. 50% of hosted Ethereum nodes are on Amazon Web Service (AWS)! And 66% of validators are subject to US jurisdiction.
Crypto market regulations can force Ethereum validators to ban “unfriendly” transactions. Why not centralization?
Uniswap / AAVE / Compound / dYdX are top DeFi projects in terms of users and liquidity that set the brand for the market.
And even they are centralized and can ban: an interface for certain IPs, suspicious addresses, assets... The cases are isolated, but their very fact already casts doubt on decentralization.
L1 blockchains - SOL can simply be turned off, AVAX, NEAR have the bulk of the coins in the hands of the team. BNB does not hide the fact that they are centralized and subject to the rules of international sanctions.
Stablecoins - USDT / BUSD / USDC are completely centralized, since each has one issuer. USDT/USDC have already banned 50-500 addresses.
Conclusions :
Decentralization in its purest form is an idea that the crypto industry aspires to but will never achieve.
The decentralization of a project can be judged by its most centralized part.
However, in some cases, projects with one main body develop faster and solve problems more easily: Binance, stablecoins, L1 blockchains