A naukri.com initiative
Hackernoon
1w
263
Image Credit: Hackernoon
Blockchain’s Hidden Centralization Issues
- The article discusses hidden centralization issues in blockchain technology across different layers.
- In terms of Hardware, centralization around specialized hardware has been documented, with a lack of academic research on mining hardware usage in real-world systems.
- Evaluation of centralization in virtual hardware hosting and incentivizing hosting diversity is recommended for future research.
- Regarding Software, there is a lack of formal analyses on the usage of full-node ledger software, indicating centralization tendencies.
- Some blockchain projects show varying levels of centralization in software management, with a notable concentration of contributions from a few individuals.
- The article highlights the need for further investigation into wealth decentralization in cryptocurrencies and the challenges posed by their pseudonymous nature.
- Cryptocurrency economics, such as initial token distribution and ownership, exhibit high degrees of wealth concentration in certain systems.
- Centralization issues extend to network topology, with Bitcoin and Ethereum showcasing varying degrees of centralization in their P2P networks.
- Consensus mechanisms in blockchain systems, like mining pools and committee-based approaches, also show centralization concerns.
- Governance issues, including development funding and conflict resolution mechanisms, reveal centralization tendencies in decision-making processes.
Read Full Article
15 Likes
For uninterrupted reading, download the app