Questions tagged [decentralization]

systems, such as Bitcoin, that lack any single central authority to validate their operations and which have to use other means to determine the validity of operations.

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31
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2answers
2k views

Do mining pools centralize the Bitcoin network and make it less secure?

A mining pool with a significant percentage of the hash rate could allow double spend attacks by the pool manager. There are a number of pools that approach this level. However, most people say that a ...
22
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6answers
11k views

Why did Satoshi design Bitcoin to be mineable only on specialized hardware, if the goal was decentralization?

GPU-mineable cryptos are arguably more decentralized. Did he simply miss this design aspect or does this sound fishy to you?
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4answers
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Is Ripple centralized or decentralized?

Are people still fighting about this or have they come to a consensus? Also, as of today (Sep 2015), what is the main advantage of Ripple over Bitcoin?
14
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1answer
636 views

How will bitcoin stay decentralized when mining becomes extremely expensive?

My understanding of bitcoin is that the miners are the ones keeping bitcoin decentralized. What happens when only the richest of people can afford mining?
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3answers
6k views

How is a hard fork resolved?

In March 2013 there was a fork following the v0.8 release. The issue was resolved rather efficiently, as explained in the post-mortem report. However in this process there were winners and losers: the ...
13
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1answer
7k views

What is the P2Pool?

As I was checking this SE, it doesn't appear this important question has been asked: What is the P2Pool? How does differ from the traditional approach and what does it offer its users?
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3answers
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Is centralization in the Lightning network inevitable? Why (not)?

Especially keeping in mind the possibility of single-funded channels (see Tadge's Google Doc Slides), buying from an exchange and concurrently opening a payment channel on the Lightning network would ...
12
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3answers
3k views

Is Lightning Network a risk for Bitcoin security since it reduces miner fees?

does LN represent a risk for the Bitcoin ecosystem since it will reduce miner fees (the only income they'll have in a post-btc-minting world) and displace them into second layers? I couldn't find any ...
11
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4answers
956 views

What can be done to slow/prevent mining centralization?

Assuming all buyers have access to the same ASICs (ignoring that ASICs developers and manufacturers will always have the latest first, even if only used for "testing" prior to sale) energy costs would ...
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2answers
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What is the Ripple equivalent of the “51% attack?”

In Bitcoin, if a participant gains control of more than 50% of the hash power, they can execute a double-spending attack. The "attack" could come from within, say if the existing powerful miners ...
10
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2answers
460 views

Decentralized transactions between two decentralized currencies

Currently, bitcoins and namecoins are implemented using the Bitcoin protocol. And there might be several reason for new block chains to appear, but this is not the subject here. As far as I know, ...
9
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2answers
1k views

Why are banks and other centralized entities interested in block chains?

Apparently banks and other centrialized entities are interested in block chain technology. My question is, why? The whole point of block chains is for decentralized, trustless, consensus. Bitcoin, ...
9
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1answer
582 views

Why would increasing the Bitcoin block size lead to a more centralised system?

Why does Bitcoin Core contributor Peter Todd think that increasing the Bitcoin block size would lead to a more centralised system? “The system doesn’t scale, and you just have to accept that and do ...
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4answers
2k views

Decentralized escrow functionality built into Bitcoin?

AFAIK there are a few websites out there that offer escrow services for Bitcoin. Those however are central, i.e. I have to "trust" them. Is it being discussed, is it theoretically possible, or does ...
9
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1answer
110 views

Bitcoin node Decentralization

Is the number of independently owned and operated full Bitcoin nodes more important than the total number of full Bitcoin nodes with regards to Decentralization? Assuming the answer to the above ...
8
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3answers
473 views

Could cryptocurrency “insurance” slow Bitcoin adoption?

Does the concept of cryptocurrency "insurance" undermine the purpose of "being your own bank"? Recently I have seen more Bitcoin related companies offer some sort of insurance for Bitcoins stored in ...
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3answers
1k views

What are some of the advantages & disadvantages of the following: Colored Coins and Counterparty

Seeing the release of coinprism wallet for colored coins and I'm also playing with counterparty.co What are the main differences among these two competing decentralized asset managers? I see that ...
7
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1answer
108 views

How can a DAO seek enforcement of a contract?

If a DAO hires someone to perform a task that is not completed according to contract terms, what is the legal remedy of the DAO. Assuming the DAO is not incorporated in any jurisdiction, can DAO ...
5
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1answer
301 views

How does Dash achieve anonymity without centralisation?

Dash is supposedly completely anonymous. How does this work without any centralisation? Is there one person with all the transactions and only they mine?
5
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1answer
156 views

Incentive for mining by regular users

Most of the time that a regular user gets introduced to the concept of mining, they're immediately non-incentivized by the community and also by the high-cost of hardware compared to the actual reward....
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3answers
41 views

Looking for whitepapers on pool-resistence mining

I have seen several cryptocurrencies list the feature of decentralization of mining through ASIC-resistance and pool-resistance. However, I have not yet found any whitepapers which explain how the ...
4
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3answers
556 views

Has the bitcoin network ever been “down”?

I'd be interested to know if the bitcoin network has ever been down. By "down" I mean that a client would not be able to synchronize with the network to obtain data like the txs in the mempool or ...
4
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2answers
383 views

Is Bitcoin a decentralized time-stamping authority?

Can Bitcoin/blockchain be thought of as a decentralized time-stamping authority (TSA)? Is there true consensus in the Bitcoin network on a mined block's time, or just that the block was mined?
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2answers
407 views

Decentralized democratic voting [duplicate]

Has the fundamental problem in cryptovoting, one person, one vote, in a completely decentralized or blockchain centric manner been solved? In other words, how can votes be allocated in a ...
3
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3answers
558 views

Is there any benefits to a distributed computing architecture outside of cryptocurrencies?

I was recently talking to a German start-up that was in an accelerator programme. They are building a product which is a distributed database that they are proposing will have efficiency benefits over ...
3
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1answer
254 views

Can someone please explain how Lightning paths are working and what effect large centralized hubs have?

Can someone please explain how Lightning paths are working and what effect large centralized hubs have? Dear community, I have read some stuff about lightning and i am really interested to ...
3
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1answer
401 views

Why is decentralized e-commerce good or better?

All of the promotional materials (videos, papers, articles, etc.) on Bitcoin bill it as a decentralized solution for e-commerce/online financial exchanges that bypasses traditional banks, federal ...
3
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2answers
458 views

Are the bitcoin miners decreasing in quantity and increasing in size?

From what I am learning about bitcoin, the mining process is becoming exponentially difficult and hence exponentially more expensive (or at least more expensive), as people need more physical ...
3
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2answers
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What security threats does blockchain technology solve or present?

I am interested in security, identity and authenticity in electronic networks. What sort of security concerns could blockchain technology help with and what sort does it pose? Are there entry and ...
3
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1answer
1k views

Is there a list of all cryptocoin currencies? [duplicate]

Apart from bitcoin, I know few other crypto currencies (by this I mean currency which works in a similar way to bitcon). They are: namecoin lightcoin ripple I also heard about SolidCoin, but as far ...
3
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1answer
984 views

How to store 30kb file using Decentralized Blockchain Data Storage on NXT (nxtcoin) by attach messages?

I'm curious to how would one store a 30kb file on the NXT blockchain since the NXT protocol can attach a 1000byte message. My test scenario is storing a 30kb midi file on the nxt blockchain and then ...
3
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4answers
4k views

Is there any centralized cryptocurreny?

Is there any centralized cryptocurrency? Is cryptocurrency a Bitcoin oriented concept only? From what i read almost all of the cryptocurrencies are derivatives of Bitcoin.
3
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0answers
80 views

What are some resources that analyze “how centralized Bitcoin really is”

Are there any blogs that track the centralization in Bitcoin? Is it growing, or is Bitcoin becoming less centralized over time? E.g. I believe mining pools have become somewhat less centralized in ...
2
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2answers
916 views

Why can't timestamps be a substitute for blockchain?

I'm super fascinated by the entire concept of proof of work and how it allows for a trustless, decentralized system. Despite knowing that proof of work (or proof of stake) can be an inevitable ...
2
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3answers
1k views

If bitcoin is decentralized then who keeps track of computers in network

I keep hearing that bitcoin is decentralized i.e. no single entity owns it. And each computer which is part of bitcoin network keeps the copy of ledger. My question is who keeps track of all ...
2
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1answer
1k views

Ripple validator nodes

Are ripple validation nodes appointed by central authority? If not, what prevents 51% attack through validator nodes? Why ripple.txt file contains validation nodes list? Who maintains this list? What ...
2
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3answers
2k views

How is Bitcoin truly decentralized?

Whenever Bitcoins are discussed, one generally reads how "Bitcoins are decentralized. No company nor state controls them". My question is, how is this statement true when you read about how Bitcoin ...
2
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2answers
482 views

Is simplified payment validation (SPV) decentralized?

Is simplified payment validation (SPV) decentralized? Viz., when an SPV client wants to verify a payment, does it connect to a central server or to several random peers, checking that their Merkle ...
2
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1answer
248 views

Are transactions in a block decided by mining pool operator?

My assumptions: Most pools have an operator. All individual miners part of the pool work on block with address of the coinbase transaction owned by pool operator. pool operator gets all the bitcoins ...
2
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1answer
480 views

What is Multi-PPS (Pay Per Share)?

I know the original proposal on bitcointalk is here, but can someone explain it more succinctly? How does Multi-PPS work? Can it actually prevent mining centralization?
2
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1answer
273 views

Do we know who runs the big mining pools?

After looking at the hashrate repartition https://blockchain.info/fr/pools. It seems to me that bitcoin is quite centralized, and that two big actors (mining pools company who run the bitcoind server) ...
2
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1answer
811 views

Geographical distribution of mining power/work

Is there any information on how the mining power is distributed geographically? I.e. where the computers are located that do the work. This is important as one measure of centralization of the system,...
2
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1answer
435 views

How does bitsquare sell/buy fiat currencies when it is decentralized?

I noticed that on bitsquare you can sell your BTC for fiat such as usd or euro. But my question is how is that decentralized when you want to cash out with USD or EUR? Who is the middle man that ...
2
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1answer
197 views

Are there any complete Bitcoin systems?

It seems to me that to keep Bitcoin both decentralized and secure, the whole of the Bitcoin process should ultimately depend on each user, or rather, that the involvement of each user should ...
2
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1answer
145 views

If the supply of Bitcoin is regulated, how could it be said to be decentralized?

The minting of new bitcoins is deterministic, and there will eventually be a cap to the production of new bitcoins. Why do we say that bitcoins are a decentralized currency if they are created in such ...
2
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1answer
155 views

Is there a way to create decentralised rating system akin to #bitcoin-otc?

I'm wondering if there is a way to create a ranking system similar to #bitcoin-otc, but making it decentralised?
2
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0answers
642 views

The idea of Blockchain compression [closed]

Bitcoin's blockchain is large. By accident, I discovered a way to reduce it (on the disk), but I wonder why it was not implemented by someone else. I wrote a short documentation here: http://194.28....
2
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0answers
152 views

Why do people expect Bitcoin Unlimited to cause miner centralization?

I've seen the argument that Bitcoin Unlimited will cause mining to centralize further. Can you please explain why people expect that to happen?
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2answers
44 views

Why can't Bitcoin transactions be stopped like SWIFT transfers?

As I know, most BTC hacking happens at digital wallet (but in blocks). I believe the hacker use normal BTC transaction to transfer those stolen BTC to other block addresses. Why can't we stop the ...
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2answers
256 views

Is the Bitcoin Core software managed by a central authority?

Is the Bitcoin Core software managed by a central authority? It is in the context, that once a transaction is broadcast by a user, then is it centrally published at the application level (i.e Bitcoin ...