Decentralized Cryptocurrency Dreams

2019-01-28T19:42:59.000Z Honest Cash

A coin needs to be decentralized if you want it to be able to resist attempts to regulate, control, cheat or stop it. Not every Crypto claims to be (or even claims it wants to be) decentralized. I see 2 main areas that need to be decentralized. Below I show some example coins and my current opinion about their level of success at creating decentralization of Mining (or other Security) and Governance (Base Code Development). I see decentralization and fairness of Coin/Token ownership as a different topic except where it affects the other two. There are many other cryptocurrencies trying to get adopted by "The People" of the world. I do not know enough about most of them to be able to add them to this comparison. There are also many crypto tokens/platforms/etc. that want their native coin to be valuable and their project to be decentralized, but, they are not really moving towards being a currency. Feel free to add your thoughts about my examples or other coins in the comments below.

 

BTC - Bitcoin, the "Store of Wealth" currency

Mining/Security:

Good - Some concerns due to regional miner concentration(s)

Governance/Base Code Development:

Centralized -  (Infiltrated and captured by a well funded group)

BCH - Bitcoin Cash, the "E-Cash for All The People" currency

Mining/Security:

OK - Too little mining power to be "good". BTC miners helped save BCH from BSV's takeover attempt.

Governance/Base Code Development:

OK - weakened by splits with BTC and BSV. "Battle Tested"(tm)

BSV - Bitcoin Satoshi Vision, the "Bitcoin Classic"? currency

Mining/Security:

Centralized - So far.

Governance/Base Code Development:

Centralized - (Forked by a well funded group)

Mining/Security of the future:

BTC probably hopes to see diversified Miner ownership. BCH and BSV need a coin price rise to attract more mining activity. BSV needs diverse miner ownership to fix that centralization. All the "Bitcoins" need to grow bigger to truly protect themselves from well planned and well funded "State-size" attacks.

Governance/Base Code Development of the future:

BTC holders and miners hope for a benevolent dictatorship (or they believe the propaganda telling them all is good and their coin is the most decentralized). BCH's loosely organized development teams (and code) are young and vulnerable to a variety of attack vectors. BCH seems to have fended off the BTC infiltration and the attempted 51% attack by BSV. I like their chances for getting BCH past these early vulnerabilities. They seem to be working towards better decentralization all the time. BSV development is owned by a few, but, has attracted some real dev's who may be able to do some of the stuff Craig Wright claims BSV will do. After BSV makes the code the way the "owners" want it, they could move towards decentralizing. If they really "lock down the code" so there is no development, that could be called a 100% success on decentralizing (if they don't hold the key to future development). An actual adaptable decentralized governance structure is very hard to develop. The Block One company is doing creative things in their attempt to set the EOS platform "free" from their benevolent semi-control. Crypto is young and will probably be learning from a lot of mistakes for a while still.

Time will tell if any crypto's will achieve the dream of true decentralization. It may be that only a certain level of decentralization is enough to succeed? It may be that they need to begin somewhat centralized to get started and get most of their code written. True decentralization is not easy to achieve. Many coin haters will attack a coin for not achieving it even though the attacker's intention is to support a coin that does not have it either. Bitcoin Core may have been diverted from their original mission to create e-money for The People of the world, but, their open source work laid the foundation for many projects to take up the torch of providing financial freedom to The People. Each coin may still be too vulnerable/centralized to resist attacks on it's own, but, the cryptocurrency ecosystem has become a multi-headed beast that appears to be beyond human-powered destruction. Sadly, the many heads are trying to eat each other. Hopefully they will learn to work together and make crypto stronger for everyone.

Thanks for considering my ideas,

- Big Bubbler

As always, I want to encourage people with feedback and differences of opinion to speak up. Maybe I can refine my ideas (or spelling/grammar). If your going to spew Blockstream/Core social-engineering talking points, I hope we can all see through the disinformation and clutter. I believe Bitcoin-BTC is currently "wearing no cloths" (lacks the necessary fundamentals for wide-scale adoption as a cryptocurrency). My hopes are not high, but, I do hope BTC fixes it's problems.

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