Analyzing Cryptocurrency’s Stability And Blockchain’s Decentralization Movement For 2019
Cryptocurrency And Blockchain Stability- Should Blockchain Be Completely Decentralized?
If you’re worried that the headline has a typo, don’t worry, it doesn’t. Blockchain’s issue about decentralization has been an issue for a while now.
With all its claims to decentralization, it appears that blockchain and cryptocurrencies are actually more centralized than most developers would care to admit.
However, as we begin to round up 2018 and move into 2019, there’s the question about survivability and stability of blockchain and cryptocurrency.
A more stable cryptocurrency market would be the first step towards achieving mass adoption –a major goal for many cryptocurrencies and blockchain projects in 2019.
This is not surprising seeing as 2018 was a terrible year for cryptos, with popular tokens like bitcoin hitting an all-new price bottom –essentially the lowest it’s been in 18 months.
Blockchain’s complete and unyielding decentralization could play a crucial role in mass adoption in the coming years. Blockchain and crypto right now are quite flexible in practice, never mind what is said or written about its decentralization. There are very few projects that are truly decentralized.
The good news is that the malleability, while the opposite of what blockchain stands for, has actually helped the industry grow somewhat as seen in banks and institutional investors investing huge capital in the market.
Even more, it’s made trading and investing easy for the average individual, as seen in the centralized nature of the most popular and biggest exchanges. However, these same benefits have contradicted blockchain’s core principles and features –decentralization being one of the key ones.
This then begs the question, should blockchain and cryptocurrency become completely decentralized in 2019 and beyond?
Well, bitcoin’s popularity and worldwide acceptance was largely predicated on the idea that it was the world’s pioneering decentralized cryptocurrency. In fact, because of its decentralization, the network has remained hack-proof, even with its many issues.
However, the repeat of these issues across diverse crypto projects which are all decentralized has resulted in the question about completely decentralized projects being ideal or not.
But then, since these projects’ adoption are dependent on its users and community, maybe the right question is: are users interested in total decentralization? Or do they just want features that puts power back in their hands?
Features like the ability to control their data, guarantee their privacy, and enjoy low transaction fees while carrying out cross border transactions, even if there’s partial decentralization?
This is the real issue, considering that more investors and exchanges are looking to move towards the 100 percent decentralized model in the near future. It does appear that for most users, the most important things would be the inclusion of features that solve their problems.
The quest for decentralization may not necessarily be about blockchain decentralization itself. It may just be a reaction to a symptom, and not the quest targeted at the root of the problem.
So, instead of developers solely focusing on decentralization as the solution to these problems – a problem that was created by other issues- they might be better served focusing on the real issues.
Of course, if decentralization can help resolve some of these problems, then it should be included in the possible solutions. But the approach towards decentralization shouldn’t be on the basis of focus on dogmas and ideologies. Instead, it should be on practicality and real world use cases.