Decentralization, a word consistent with blockchain technology, is known for its recent popularity among blockchain startups. Decentralization. Since Satoshi Nakamoto made its debut as an innovative product in 2008, this feature has made this technology unique. The idea behind this technology is to create a platform for transactions that is not controlled by the central government.
By using a consistent protocol, transactions and data are recorded on blocks, which are immutable and safe. The concept is to completely eliminate any form of control by a central third party or trust.
The decentralization of the blockchain has always been the main selling point of the technology used by some organizations and blockchain startups. They make money by creating products and providing services under the premise of transparency and decentralization.
The big question is, is the company creating a completely decentralized system, or is it creating a new centralized structure?
Loyal to decentralization?As mentioned earlier, since the creation of Bitcoin and Ethereum, some blockchain startups have used blockchain to launch a large number of services, from entertainment and healthcare to digital identity solutions, which are expected to achieve a fully decentralized digital Creation of assets.
However, as some of these services have been put into use, it is obvious that some well-known blockchain projects have begun to tend to be centralized, which is an urgent problem for blockchain.
Take Bitcoin as an example. It is the pioneer of blockchain technology and Proof of Work (PoW) consensus mechanism. Unfortunately, it is one of the projects that are gradually moving away from decentralization.
In the early stages of Bitcoin, the PoW consensus mechanism seemed to work perfectly, because the miners had freedom and were rewarded. However, as mining became more difficult and these valuable rewards became more competitive, miners began to unite and collaborate to share computing power and rewards.
Therefore, some mining pools, mainly in China, control the mining process. China's lower energy costs give these oil depots a higher advantage. This kind of monopoly control has caused a few Bitcoin pools to have a significant impact on the security of the Bitcoin network.
However, one might say that this centralization of mining pools is the result of a small number of large mining companies, rather than the result of any actions taken by the Bitcoin network itself.
The security of the Bitcoin network is the highest, because there are nearly 10,000 nodes in the world. As a payment tool, Bitcoin is still one of the more stable currencies in trading assets and even in turbulent industries.
Another blockchain project that seems to be facing the problem of decentralization is Ethereum. Ethereum is very popular in blockchain projects and exchange projects due to its flexible contract function. It once seemed to be the standard in the blockchain field.
However, the blockchain platform faced some controversial issues in 2016 due to its hard fork between Ethereum and Ethereum Classic. The decentralized autonomous organization (DAO) of the Ethereum blockchain was attacked, causing disputes within the community, resulting in millions of dollars in losses.
Ethereum co-founder Vitalik Buterin proposed a solution to hard fork the blockchain to combat hacking and allow the return of stolen funds.
However, this raises the issue of true decentralization among supporters of Ethereum Classic. Blockchains that are arbitrarily divided are questioned whether they can guarantee true decentralization. However, Ethereum is still one of the most decentralized blockchains, with more than 15,000 nodes.
This guarantees the relatively strong security of the Ethereum network. To this day, the ERC token standard has been widely adopted by many projects wishing to issue their own tokens, which means that Ethereum is still standing strong and cannot be ignored. power.
NEO is another example of a public blockchain project, which is gradually becoming centralized in the pursuit of scalability and efficiency. Compared with Bitcoin and Ethereum, which exceed 9,000 and 15,000 respectively, NEO's consensus-based chain is managed by several master nodes less than 50.
Interestingly, these master nodes are controlled by NEO and its partners, allowing them to fully control the network. This situation negates the concept of blockchain decentralized commitments.
The need to stay focused and pathIf blockchain technology mainly creates a decentralized platform and removes control from third-party trust, then it is vital for blockchain projects to maintain focus on the path and loyalty to the technology. If the system is not enough, we have to solve this problem of the blockchain.
Projects like Metaverse have worked hard to stay decentralized. Allowing users to use digital identities to create digital assets, the project remains one of the most decentralized blockchain platforms. Digital assets composed of fungible assets and non-fungible assets (MST and MIT) are directly connected to the user's digital avatar.
In addition, using Metaverse Explorer, users can easily access information about virtual characters and assets, as well as quickly obtain information about any address, transaction, or block. The project continues to promise to remain completely decentralized and to continuously improve its consensus agreement to meet the needs of users, so as to avoid any form of mining concentration and unnecessary interference to the network.
This has rekindled the belief that it is indeed possible not to make trade-offs in the process of decentralization. As I pointed out earlier, several blockchain platforms have gone off track under the premise of scalability and efficiency.
However, this must be guarded against. Blockchain has promised a completely decentralized solution, which is still essential for systems that fail today, and the most important thing is to ensure that the promises are kept.
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