More

    Crypto Attorney Preston Byrne Says Ethereum is ‘Arguably Centralized', Could Spell Doom for ETH

    In a recent blog post written by Preston Byrne, an attorney at Byrne & Storm, he mentioned that Ethereum is ‘doomed to be centralized.’ He started by saying that he would be presenting a list of suggestive but not definitive evidence of centralization in the ecosystem.

    For him, Ethereum’s being centralized or not depends on the opinion of each individual and the data provided to sustain their claims. He indeed said that Ethereum is more centralized than the core of a neutron star falling into a black hole.

    He explained that Ethereum’s decentralization is at least ‘arguable.’ For him, there might have been a time in the past where the network could have tolerated the loss of nodes without having an impact on the network. However, this is no longer true.

    There are five points marked by Byrne about why Ethereum is decentralized.

    1. Ethereum is reliant on a handful of private companies to survive.
    2. Block reward cuts can be agreed without objection.
    3. Tokens remain in just a few hands.
    4. Three entities could just reduce mining rewards.
    5. Infura dominates the market for node infrastructure.

    According to him, Ethereum’s pre-mine looks very suspicious. There are large concentrations of Ether among a few individuals. If the owners of the funds would like to crash ETH they would be able to do it. Furthermore, he said that Ethereum has 13 clients (or more) but most of the nodes run Geth or Parity.

    Due to the fact that Ethereum has not solved scaling issues, it means that centralized service providers have a lot of influence on the node infrastructure. The author is making reference to Infura, which provides tools and access to Ethereum and IPFS.

    About it, Byrne wrote:

    “The fact that everyone relies on Infura for the system to work, combined with the inability of core devs to find credible scaling solutions, means node counts are falling quickly and the result is effective centralization in Infura’s hands.”

    Finally, he said that there are too-easy alignments of interests and too-rapid decision-making processes. There are major changes like adjustments that take a very short time to be discussed among the community and to take a decision on how to scale the network. According to Byrne, as there is a lack of public disagreement for changes, this could mean that the modifications and new upgrades are informally agreed before they are proposed.

    As he says, he does not know if Ethereum is centralized or not, but there is not enough data to show the contrary.

    He ended the blog post saying that outrageous claims have been made for Ethereum over the last years. These claims have been diverse and extraordinary, which require also great evidence. However, the decentralized claim could be in doubt.

    Ethereum is a network that is used by developers to create their own tokens and deploy decentralized applications. At the end of 2017 and the beginning of 2018, the network experienced incredible growth due to the large number if Initial Coin Offerings (ICOs) being launched to the market. However, during the last few months, the network has been in a bear trend that has severely affected its price and its position in the market.

    Currently, Ethereum is the third largest digital asset in the market. Each coin can be purchased for $124 and it has a market cap of $13 billion.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Avatar
    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,365FansLike
    2,782FollowersFollow
    4,136FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Cash is King in Coronavirus Ravaged Economy But Bitcoin is “Next in Line to the Throne”: Hedge Fund Manager

    Mark Yusko, the CEO at Morgan Creek Capital Management says coronavirus is unleashing a once in a lifetime downturn. Yusko appeared on CNBC’s “Trading Nation”...

    Bitcoin’s is Gold 2.0; Billionaire Chamath Palihapitiya Lays Out BTC’s Path Forward in Macro Backdrop

    In the latest episode of The Pomp Podcast, host Anthony "Pomp" Pompliano had Chamath Palihapitiya, the CEO of Social Capital as a guest who...

    Binance ‘Leak' Signals Possible Bitcoin Options Trading Launch On The Exchange

    The competition across cryptocurrency exchanges in the crypto derivatives markets is heating up to a boiling point as yet another big player hints at...

    BTC Isn’t a Hedge Against Stock Market’s Poor Returns or Coronavirus But US Dollar & Inflation: BitGo CEO

    In 2020, Bitcoin has been following stock markets religiously, so much so that their correlation went to a new high. But now, the flagship...

    Netflix's ‘Tiger King' Villian, Carole Baskin at The Big Cat Rescue Accepts Crypto Donations

    With the Coronavirus (COVID-19) running rampant in the United States, Americans are drooling over the hot new docuseries on Netflix; “Tiger King: Murder, Mayhem...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.