Report Shows 85% of Crypto Project Developers Can Change Protocols At Any Moment
85 Percent Of Developers Are Able To Alter Their Cryptoassets’ Protocol
Is the blockchain technology really that secure? While the most hyped enthusiasts claim that the blockchain is impenetrable and that decentralization will bring a whole new era to the world, the reality if often pretty bleaker.
A new study created by CryptoCompare has shown that an incredible 85 percent of the crypto assets in the market now allow their development teams to alter their platforms. After reviewing hundreds of cryptos, the study shows that the centralization in the crypto market is fairly bigger than most of us were led to believe when promises were made last year.
This means that, while the way that these platforms run is decentralized in some ways, the development team have a huge power over how the network can be influenced. This would go against the ideals of decentralization, it seems, but it is, in truth, a very widespread reality.
Centralization Is Quite Larger Than Everybody Expected
The study has also shown that 55 percent of cryptos are actually quite centralized and 30 percent are only somewhat centralized. This way, only 16% of the total assets can be considered to be a part of fully decentralized ecosystems.
As a method of payment, decentralization is somewhat bigger. Almost 41% of crypto payment methods are centralized and 22% are semi-centralized.
Most Cryptos Could Actually Be Securities
It looks like the SEC was right. Most cryptos can, in fact, be considered securities. The study applies the guidelines established by the Swiss Financial Market Supervisory Authority (FINMA) in order to prove this.
While the main tokens of the market, Bitcoin (BTC) and Ethereum (ETH), could not be considered securities because they are not fully centralized, more than half of the altcoins in the market today could, which means that the main tokens might not be prey to the issues of centralization, but the majority of the market (formed mostly by Initial Coin Offerings) is.
The results are quite worrisome for crypto enthusiasts. Decentralization (or used to be) a sacred mantra in the community, so seeing so much centralization can prove that the future of cryptos is more centralized than we all hoped for.