The Cracks of Decentralization in Crypto

Now, decentralization is one of the central challenges of the "blockchain trilemma," which describes the tradeoffs between security, scalability, and decentralization when designing a network.

Source: Image generated using the prompt: “Uncle Sam (USA) making cracks in a wall, with the other side being technology like computers and cellphones.

Introduction

The rise of blockchain and cryptocurrency was built on the promise of decentralization, but as these technologies mature, cracks in that promise are beginning to show. From centralized control of Bitcoin mining pools to the reliance on companies like Coinbase for Bitcoin ETF custody and AWS for hosting, many parts of the crypto ecosystem are becoming increasingly centralized. This article explores how these points of centralization, along with government intervention and surveillance, are challenging the very foundation of decentralization in the crypto world. With growing demand for privacy and censorship-resistant platforms, the article also examines where the opportunities lie for projects that are prioritizing true decentralization in areas like DeFi, AI, and privacy tech.

Curious about how these hidden centralization risks could affect the future of blockchain and crypto? Dive deeper into the vulnerabilities and opportunities in the full article.

Read the full article here or tap the research cover below.

You can read our Disclaimer here.