The Need of a Centralized Blockchain Ecosystem for future.

The Need of a Centralized Blockchain Ecosystem for future.

Block-O-Pedia
July 7, 2018 by Vinay Nair
185
A Cryptocurrency like bitcoin may be the first application of a completely decentralized Blockchain ecosystem but the potential application of such a breakthrough technology upon which the Bitcoin software was based had limitless opportunities to scale up. With time it evolved to make its way to all walks of life, from low-cost money transfers to
The Need of a Centralized Blockchain Ecosystem for future.

A Cryptocurrency like bitcoin may be the first application of a completely decentralized Blockchain ecosystem but the potential application of such a breakthrough technology upon which the Bitcoin software was based had limitless opportunities to scale up. With time it evolved to make its way to all walks of life, from low-cost money transfers to a secured way of recording and sharing data. Blockchain and its decentralized nature won the heart of millions with time.

However, there is always another side to the tale and this article dwells on that particular nature of blockchain applications and its use-cases.

Decentralisation is a progressive game. What I mean by that is pretty simple to understand, conceptually. Let’s consider the case of bitcoin itself. Bitcoin early stages of growth were caught in crossfires between its developer community regarding its long-term functionality and scalability. Not having a centralised body or the inability to reach a consensus resulted in the eventual conflict of interest which got Bitcoin to lose its value with time and find competition with its own forks, and later on from advanced technologies like Ethereum Blockchain.

Hence, decentralisation can play spoilsport in some cases. In fact, if you take into consideration the most successful ICOs, its centralised nature has been a catalyst to its growth. From the time when Bitcoin was first conceptualised by Satoshi Nakamoto in 2008, the original idea of a “One-CPU-One-Vote” has lost its charm. Now, that is to say, any blockchain based idea should be promoted as a close and centralised management system, which can progressively grow into a distributed multi-channel centralised system, and to eventually evolve into a true and total form of decentralization.

It’s in the nature of any form of organisation to grow from a grass root level of centralisation to build upon the trust with time. The more it expands, the further its control goes on to be distributed equally and gradually.

Facebook Comments

loading...

Leave a Reply