Why Blockchain Networks Are Not Decentralized Yet

Date : 04/11/2019 @ 5:20PM
Source :ADVFN Crypto NewsWire
Stock : Bitcoin (BTCEUR)
Quote : 4733.50000000  26.10000000 (0.55%) @ 7:14PM
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Why Blockchain Networks Are Not Decentralized Yet


 
 

Bitcoin Global News (BGN)

April 11, 2019 -- ADVFN Crypto NewsWire -- Debates over what makes a blockchain project decentralized have been raging since the blockchain industry first became bigger than just Bitcoin. From Roger Ver and Jimmy Song to Nick Szabo and Vlad Zamfir, and beyond, everyone seems to have a different opinion on the best way to decentralize a blockchain network.

Despite the fact that so many different opinions exist in such a small industry, at least one fact is clear. If the ownership of the network’s assets is not completely transparent, then the network in question is likely not decentralized.

With this in mind, the news surrounding MakerDAO yesterday could definitely be seen as serious trouble for the network. Reportedly, during the MakerDAO network’s weekly call with participants, a key question was left unanswered.

Who is heading up the foundation that originally helped the Dai stablecoin to go live? According to CoinDesk, this foundation now has the responsibility of allocating funds for the continued development of the network, which means that they control 27% of all of the Maker tokens that are currently in circulation. What makes this situation arguably even more sketchy is that nine anonymous individuals make up the entire board of directors of the foundation.

Why does this relate to how decentralized the MakerDAO network is, as well as the title above? It’s simple really. Since the identities of these directors were not given, no one seems to know who is responsible for the continued development of the MakerDAO ecosystem.

The foundation’s lawyer essential refused to divulge any of these names and apparently suggested that doing so would cause trouble for him in some fashion. Exactly what this means is, at this time, unclear.

What is, is that until the foundation changes its’ leadership structure to one that is community run as CoinDesk has claimed they will do, the MakerDAO network is not decentralized.

Looking beyond this example, it is easy to see many other holes in the promises of crypto networks. EOS is still run by a handful of nodes, as is Tron. Cardano appears to depend heavily on more than one foundation. The Ethereum network lives and dies with the decisions of developers during their calls. Until all of this changes, it may be argued that there is no truly decentralized network. Centralization still rules, that is, unless the network in question is Bitcoin.

 

 

By: BGN Editorial Staff

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