Research Says Only 16% of all Cryptocurrencies are Decentralized

Research Says Only 16% of all Cryptocurrencies are Decentralized

The Cryptoasset Taxonomy Report 2018 revealed majority of cryptocurrencies are either centralized or partially decentralized

CryptoCompare looked into various aspects of existing digital assets. The points the firm examined are the level of decentralization, regulatory, circulation and concentration of supply, economic benefits, and industrial classification.

CryptoCompare Archetype Grouping

CryptoCompare exercised modes for grouping the new asset class. These modes for classification include legal dimensions, the UK Standard Industrial Classification, the rationale for hodling onto a cryptocurrency, and the drivers of economic value.

The report also takes into account past Commodity and Futures Trading Commission Chief, Gary Gensler analysis. According to Gensler, though both Ethereum and Ripple can be considered as securities, their levels of decentralization are distinct from each other. Ethereum has a stronger decentralized identity than Ripple.

The Statistics

The report showed 55% of all cryptocurrencies are centralized, 30% are partially centralized, and a minority of 16% are decentralized.

Utility Tokens

The advance of utility tokens operated by private servers is on the rise.

Hence, 58% of these tokens are centralized, 32% partially centralized, and 9% decentralized.

Payment Token

BTC, LTC, and XLM are mentioned as the most decentralized of digital assets.

Of the tokens used for payment, 41% are centralized, 22% partially centralized, and 37% decentralized.

Asset Tokens

Tokens from ICOs are categorized by the report as financial assets.

A bulk of 79% from financial assets are fully centralized, 14% are partially decentralized, and 7% are decentralized.

Use Case Statistics

The report states that most crypto assets are used for payments (76% of cryptocurrencies) and DApps (36% of cryptocommodities).

Are We Headed Toward Centralization?

The father of all cryptocurrencies, Bitcoin, was created to move away from centralized systems and authorities. Ten years later since inception, a number of companies, new and old, entering the crypto and blockchain space have chosen to use the technology whilst overlooking the decentralized root of the system.

BTC

4,003 USD
-1.37%

ETH

135.90 USD
-3.03%

LTC

58.85 USD
-2.68%

XRP

0.3107 USD
-2.80%

XLM

0.1063 USD
-3.08%

Related news

xRapid will not ‘flip the switch’ on XRP price, say prominent XRP community enthusiasts

XRP, the cryptocurrency closely related with the company Ripple, has been at the center of speculation and arguments, with respect to xRapid and XRP’s price. There have been a lot of accounts on Twitter promoting the fact that the price of XRP will rise and shoot to the moon, after banks and financial institutions start using xRapid for cross-border payments. The most famous theory put out by people was the price of XRP hitting $589 by the end of 2018, which didn’t happen. However, a recent conversation started by prominent XRP enthusiasts, has suggested that xRapid would not massively affect the price of XRP. Nayer Malik [@sinjunsmyth], a Twitter user, stated, “@galgitron @Hodor @jungleincxrp @C3_Nik …Guys what r ur thoughts on Bob Way’s view regarding X-Rapid usage not increasing the price in and of itself?” In response, Galgitron [@galgitron], a prominent XRP enthusiast and a contributor to the XRP community, added that he had “been saying that all along.” In one of his blogs Galgitron stated, “Sure, there may be some massive FOMO buy-in once banks announce they are starting to use xRapid, and that will send the monkey [price action] hundreds of feet into the air, but, only speculation creates parabolics..” C3|Nik [@C3_Nik] acknowledged the above and replied, “It was seen like blasphemy to say that xRapid would not move prices that much by itself (e.g. “not the flip-the-switch kind of event”). It is interesting that the people who spread that narrative and misled others still have so many followers. Selling dreams.” A Twitter user, @Crypt_Megalodon, voiced his opinion, which was different from the others. He tweeted, “Well when you consider the US money supply being 15 trillion alone, the XRP cap doesn’t worry me. If/when XRP becomes the standard world wide, inflation will be rapid with mass adoption. I agree, with years, but, the value can be prodigious! The cryptoloution has already started.” Considering the price of XRP at press time was only $0.31, and that there were more than a couple of Ripple customers that had already started using xRapid for cross-border transactions, the increase in the price of XRP due to xRapid seemed highly unlikely. The post xRapid will not ‘flip the switch’ on XRP price, say prominent XRP community enthusiasts appeared first on AMBCrypto.
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