The pursuit of centralized cryptocurrencies: Separation of fact from fiction
In recent years, the world of cryptocurrency has been dominated by decentralized networks, with most of the large cryptocurrency branches of groundbreaking Ethereum. However, in the midst of this trend, there have been some issues of some concentrated cryptocurrencies. Is it possible to find a block chain -based cryptocurrency that operates without mediators? Can we really only mark them as “Bitcoin oriented”?
What is centralized in cryptocurrency?
Basically, centralized cryptocurrency is based on the central authority or broker (such as an exchange, a wallet provider or a mining pool) for the validation of events and network management. This is at odds with decentralized cryptocurrencies such as Bitcoin, which operate without such brokers.
Bitcoin and Concentration case
Bitcoin, founded in 2009 by Satoshi Nakamoto in 2009, is undoubtedly one of the most concentrating cryptocurrency. The Blockchain architecture behind it depends heavily on the decentralized consensus mechanism, where nodes (computers) check the events independently by creating a network effect. Although this approach has earned earnings, such as safety and decentralization, it also means that Bitcoin works without the focus of the authority.
Other centralized cryptocurrencies
Many other cryptocurrencies have been created by centralizing the mind. These are:
- Monero (XMR) : Private cryptocurrency that uses advanced encryption techniques to hide the sender and the recipient information.
- Dash (line) : Distributed exchange -based currency that allows fast and safe events without brokers.
- ZCASH (ZEC) : Another cryptocurrency by focusing on private events using advanced encryption methods to protect user information.
Can we mark these cryptocurrencies as Bitcoin oriented?
Although these cryptocurrencies have centralized features, they may not be neatly fit in the “Bitcoin oriented” class. For example:
- Monero (XMR) : Although Monero is a decentralized cryptocurrency, its primary concentration on anonymity and private events distinguishes it from other cryptocurrencies.
- Dash (line) : The use of Dash’s decentralized exchange protocol and fast event processing time differs from the centralized consensus mechanism of Bitcoin.
conclusion
The idea that most of the cryptocurrency is Bitcoin derivatives is simplification, but one with some truth. However, when looking at the concept of centralized cryptocurrencies, we need to study the underlying architecture and design choices.
Although centralization is the natural consequence of Blockchain technology, it may not completely close decentralized approaches. Many modern cryptocurrencies have successfully created solid, decentralized networks without relying on mediators. As the cryptocurrency scenery continues to develop, it is interesting to see how these concepts work in practice.
References
- Satoshi Nakamoto’s “Bitcoin protocol”
- “Monero white” “
- “Dash Whitpper”
- “Zcash -white”
Note: The references offered are only for context and training purposes. This article is not intended to promote or criticize any specific cryptocurrency or concept.
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