Centralization news

The concentration of control of an activity or organization under a single authority.

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Block.One Now Part of EOS Elections as Centralization OF EOS Network Rages On

Block.One revealed that it will become part of EOS election as the issue centralization of the platform emerges yet again. The company behind EOSIO platform now says it will be taking part in all electoral aspects in order to select Block Producers within the EOS blockchain, Cointelegraph reports. Through a series of tweets one of […]
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IDAX ‘exit scam’ shows the problem with exchange centralization

The disappearance of the CEO of Chinese crypto exchange IDAX shed a light on the ever-growing problem of crypto exchange centralization. Having the fate of an entire company in the hands of a single person is a far too common occurrence in the crypto industry and a worrying trend that ought to be stopped. Missing CEO puts the entire crypto exchange in jeopardy The crypto industry was shaken earlier this week when news about a possible exit scam began surfacing on social media. Triggered by withdrawal problems that stemmed from last week, users of Chinese cryptocurrency exchange IDAX quickly began to suspect foul play was at hand. The company addressed the issue, saying withdrawals were in a “congested state,” but panic quickly spread and led to the depreciation of IDAX’s native cryptocurrency. However, days later the exchange issued an urgent announcement, saying that its CEO has “gone missing” without explanation and has not had contact with anyone at IDAX since Nov. 26. “IDAX Global is drawing up an emergency plan about platform services including deposit/withdrawal service so it is recommended that you refrain from using our all platform services,” the company wrote in its blog post. The company didn’t disclose the name of the CEO or whether he had access to the company’s cold wallet. While many reports focused on uncovering the connection between China’s recent crypto exchange ban and the disappearance of IDAx’s chief executive, the situation is much more indicative of a bigger problem in the crypto industry. Not your keys, not your coins Decentralization has always been the basic principle behind cryptocurrencies. It has not, however, been the principle frequently implemented by cryptocurrency exchanges. The lack of decentralization in these companies has often brought serious harm not just to its clients, but to the industry as a whole. As cryptocurrencies become more mainstream, the demand for “safe” and regulated companies increases. Most crypto users enter the market through large, well-known exchanges, risking their security and the security of their funds for a friendly user interface. With recognizable faces at the heads of these companies and a business model that resembles that of a traditional financial institution, these exchanges are extremely popular with crypto users. However, few are aware of the risks associated with such centralized entities. Take the example of QuadrigaCX, the largest cryptocurrency exchange in Canada, whose extremely centralized structure led to the loss of over $150 million in investor funds and the ultimate closure of the exchange. The company’s CEO, Gerald Cotten, was the only one with access to the cold wallet containing the majority of its funds. The 30-year old entrepreneur died in December last year and left the company and its 115,000 users scrambling to recover the lost funds. To avoid pointing any more fingers, almost every cryptocurrency exchange is guilty of centralization. While “not your keys, not your coins” might be an overused saying in crypto, it’s nonetheless a true one. Though it could take years before the industry manages to redistribute the power held by a handful of industry players, let this be a reminder to take the safety of your funds seriously. The post IDAX ‘exit scam’ shows the problem with exchange centralization appeared first on CryptoSlate.

Ethereum: Ahead of Istanbul Hard Fork, Centralization Questions Pour

Ethereum developers should be applauded. They are hard at work, readying the smart contracting platform for a system-wide upgrade, Istanbul, a necessary hard fork that completes Metropolis and set the ground rolling for Ethereum 2.0, a renewed version of the open ledger that incorporates Proof of Stake consensus algorithm and projected to be ready by 2023. The revamped network will not only resolve scalability problems but cement its position as a go-to platform for launching dapps. 680 Aragon one Smart Contracts will be Broken However, ahead of the anticipated software upgrade, scheduled for activation at block height 9,069,000, not all are happy. Displeased by the influence of Vitalik Buterin, the whizz kid, the co-founder of Ethereum, and Ethereum Foundation, they seem to complain that their effort will count for nothing if there are not endorsed by the two. Posting a tweet, a user, notgrubles, is obviously discontented, saying: “You can do whatever you want on Ethereum until Vitalik and the Ethereum Foundation pull the rug from underneath you.” This could stem from the fact that Istanbul will break 680 Aragon smart contracts upon release. Aragon One describes itself as the first digital jurisdiction that is manned entirely by Ethereum smart contracts. As a decentralized management platform incorporating DAOs, activation of Istanbul will prevent the platform’s decentralized organizations from receiving or transferring ETHs from one another. Commenting, Jorge Izquierdo, the CTO of Aragon One said: “The issue we’re going to have hasn’t been deemed important enough for this hard fork not to happen, which from our point of view is unfortunate [but] it’s a hard balance we understand.” Developer Centralization Vitalik is seen as Ethereum God-father and whatever he says or endorses, critics claim, should be interpreted as gospel, an observation that doesn’t sync well with a section of developers who view blockchain projects as collaborative and proposals open for criticism. Ethereum is full of uncertainty: – Uncertain maximum supply– Uncertain consensus algorithm– Uncertain legal status– Uncertain security– Uncertain scalability– Uncertain centralization (Proof of Vitalik) And the market hates uncertainty. — Kevin Pham is in Austin (@_Kevin_Pham) June 13, 2018 In recent times, more people are increasingly becoming vocal, raising their voices and highlighting the apparent developer centralization problem that is quickly encroaching the network. Contrary to what they have claimed. Ethereum has never been Decentralized. At most only distributed in some cases. When something is actually decentralized by design from release. It is actually quite hard to make it centralized. — Avatar X (@AvatarX) October 11, 2019 While Vitalik is critical, Ethereum remains one of the most active blockchain projects. Developers, despite being enticed to join competing networks as Tron or EOSIO through irresistible offers, remain steadfast, building and improving the system. The post Ethereum: Ahead of Istanbul Hard Fork, Centralization Questions Pour appeared first on Coingape.

Ethereum mining pools are an increasing area of centralization: ConsenSys

In a recently released report titled, "Measuring Blockchain Decentralization," ConsenSys’ research team ran through the metrics they used in analyzing Ethereum's on and off-chain data to answer a spThe post Ethereum mining pools are an increasing area of centralization: ConsenSys appeared first on AMBCrypto.

No Threat of Centralization: How Exchanges View the Mining Industry

Coinbase, Kraken and other cryptocurrency exchanges are taking positions on proof-of-work consensus and Bitcoin mining. Despite criticisms against proof-of-work, they argue there is little risk of centralization-induced attacks. Proof-of-work is one of Bitcoin’s core features which allows to reach consensus and keep the blockchain secure. Miners are responsible for finalizing transactions and generating new Bitcoins. However, proof-of-work isn’t perfect – to its critics, it’s a system that results in centralization of power. Though there are alternatives, proof-of-work is here to stay as far as Bitcoin, Litecoin, Monero and many other cryptocurrencies are concerned. Proof-of-work largely operates behind the scenes, but it can have far-reaching effects — which has led some exchanges to weigh in on the matter. Coinbase Endorses ASIC Mining Coinbase has recently argued that proof-of-work networks can benefit from ASIC mining. This is a controversial claim — it’s widely held that ASICs bring about monopolized ownership because they are specially designed to mine certain coins. CPUs and GPUs, by contrast, are general purpose chips that are available to anyone who owns a computer. However, Coinbase sees things differently. It argues that general purpose hardware is a greater threat to centralization. There are many GPUs and CPUs that are not being used for mining, and these could suddenly be harnessed to attack a mining network. ASIC devices, which are only useful for certain types of mining, can’t suddenly join a network en masse. Coinbase adds that Bitcoin Gold, Vertcoin, and Verge have fallen victim to 51% attacks despite attempts to become ASIC-resistant. The company suggests that coins should bring about decentralization in a different way — they should instead turn to ASIC-friendly algorithms that support affordable manufacturing and turn ASICs into a widespread commodity. Coinbase concludes that ASIC mining is inevitable: “Participants have to ask themselves if the industry is going to be secured by hobbyists running old laptops,” it insists. “Every at-scale, professional industry utilizes specialized equipment — it is naive to think that cryptocurrency mining will or should be any different.” Kraken Argues Mining Pools Are Secure Kraken has published its own in-depth report on mining mentioning centralizing effects of mining pools. At the time of its publishing in April, many people were concerned that a few major mining pools could coordinate a 51% attack due to their hashrate dominance. That fear has intermittently come and gone. Kraken argues that there is little reason to fear such an attack. It believes that heavily invested miners cannot carry out an attack sustainably as the effects on market price would devalue any profits. “We believe there is a greater incentive for [pools] to conduct honest operations and uphold the value of the network,” Kraken says. Citing rules of game theory, Kraken suggests that dishonesty is a poor strategy for miners: “Any deviation will certainly result in short-term cost with unpredictable compensation.” It also notes that pools don’t have guaranteed dominance —since users can switch between pools, new pools can form to deter collusion. Other Exchanges Are Also Getting Involved Some exchanges have attempted to get involved in mining more directly. Huobi, for example, runs a mining pool that accounts for 6% of Bitcoin’s hashrate, while OkEX runs a much smaller pool. Though they are not very significant, their existence does indicate that exchanges are interested in taking on big, Bitmain-owned mining pools. BitMEX, meanwhile, is trying to keep mining security in check. It runs Forkmonitor.io which scans Bitcoin and its forks in real time for unusual activity. BitMEX Research also covers various mining-related issues, some of which are quite obscure and gain very little coverage elsewhere. Finally, Binance has courted controversy by overstepping boundaries. After it suffered an attack in May, Binance briefly considered incentivizing miners to undo the theft. Binance eventually refrained from pursuing that plan — while miners showed no interest in complying. However, the event did raise the question of whether mining is truly irreversible. Why Exchanges Care About Proof-of-Work Exchanges typically have no direct influence over mining and proof-of-work. They can only suspend trading activity and block bad actors if an attack or vulnerability occurs. Coin developers are ultimately responsible for designing proof-of-work schemes that produce a decentralized, accessible, and secure mining network. Instead, exchanges are concerned with mining because they adjust their services around each coin’s proof-of-work model. For example, Coinbase recently decided that it is safe to reduce its confirmation times for Bitcoin, Zcash, and Ethereum Classic. On the other hand, exchanges like Bittrex have delisted attack-prone coins entirely. Some investors make decisions about which coins to invest in based on technical matters such as proof-of-work. Though exchanges are naturally concerned with market data, they often tend to keep investors informed about technical matters — a level of dedication to the public that often goes unnoticed. The post No Threat of Centralization: How Exchanges View the Mining Industry appeared first on Crypto Briefing.
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Blockchain Startup SpaceChain Sends Wallet Tech to International Space Station

Blockchain Startup SpaceChain Sends Wallet Tech to International Space Station Space-as-a-service-focused blockchain startup SpaceChain has sent its hardware wallet technology to the International Space Station (ISS). As part of the CRS-19 commercial resupply service mission, a SpaceX Falcon 9 rocket is delivering SpaceChain’s hardware wallet technology to the ISS, according to a Dec. 6 press […] Cet article Blockchain Startup SpaceChain Sends Wallet Tech to International Space Station est apparu en premier sur Bitcoin Central.
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Brave Browser (BAT) Now Has over 10 Million Monthly Active Users

Brave Browser (BAT), a privacy-protecting internet browser that’s focused on giving the masses absolute control over online activities, while also rewarding them with Basic Attention Token (BAT), has announced that the browser has seen more than 10 million monthly active users (MAU) since launching Brave 1.0 in November 2019, according to a blog post onRead MoreRead More. The post by Ogwu Osaemezu Emmanuel appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News\
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Komodo’s AtomicDEX Exchange Runs a P2P Full Node in Your Web Browser

Komodo’s AtomicDEX Exchange Runs a P2P Full Node in Your Web Browser The developers of multi-chain architecture project Komodo claim that it has created an implementation of its AtomicDEX that runs a full peer-to-peer (P2P) node in the user’s web browser. Komodo developers wrote in a press release shared with Cointelegraph on Dec. 5 that […] Cet article Komodo’s AtomicDEX Exchange Runs a P2P Full Node in Your Web Browser est apparu en premier sur Bitcoin Central.
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