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