It has indeed been a very rough year for cryptocurrency and now as the year is coming to an end all hopes for a new horizon end with it, but that’s not the end of the world. The rise and fall have been a conversation starter for some people, and they are contemplating the choices and decisions they made this year.
Blockchain technology received a lot of praise and recognition in 2018, but ever since this technology was made public, there has been a dispute over its decentralization. Blockchain technology’s main marketing point was that it promised to provide a decentralized platform, but to what end?
Decentralization being that the users control the activities on the platform and not a higher authority like the government etc. It promised to provide a better and more transparent transaction system than we have today. However recent allegations on some cryptocurrencies revealed that it is impossible for blockchains to be completely decentralized. They can, however, be decentralized to some extent but the claim of being completely decentralized doesn’t stand true to the claim.
Code upgrades are a major problem towards complete decentralization, and Ethereum is a good example. The Decentralized Autonomous Organization holds almost fifteen percent (15%) of the total ether and its recent failure to carry on its job caused hundreds and thousands of people to lose their ether. When this happened ETH developers forced users to reverse their blockchain history. This reveals that only when the technology is being used, decentralization at work; but at the development level, centralization is at work.
And all when decentralization is not serving the end user any better than centralization. Decentralization does make it easier to recognize and pinpoint problems and defects in a system, but its mass adoption at the current beginning stage will spread dangers that this technology can cause but have not yet emerged.
The blockchain is just another system that is being overestimated for the impact it will cause. If it claims to be decentralized and safe, then it is important to think about all those who tried to pull this off previously but never succeeded. It is safe to say that blockchain is just an initial move that involves a shift of power in a society and its importance.
The blockchain is not technological innovation and entrepreneurs and traders need to understand the basis of human nature, business, and fuse that with realism to make a rational decision.
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