Connect with us

#Blockchain

Centralized Cryptocurrencies explained.

Published

on

In Centralized cryptocurrencies, the authority and decisions around the cryptocurrency development are vested with a single authority.

Comprehending the attributes and capabilities of centralized cryptocurrencies.

Signing in

Cryptocurrencies exist in various forms, depending upon the factors of its initiation. The original version of Satoshi Nakamoto was to create a decentralized form of financial economy which would prove to be like come back to the centralized financial system. But it can be concluded that apart from Bitcoin all the other Altcoins are centralized in the domain. This is because of the reason that they have some point of origin and is controlled by that authority, but in the case of Bitcoin even the owner Satoshi Nakamoto is undisclosed and it is highly Decentralized. Being decentralized has a lot of advantages with it, however, both the form of cryptocurrencies have their set of pros and cons. Let’s read about centralized cryptocurrencies.

The Centralized cryptocurrencies

In Centralized cryptocurrencies, the authority and decisions around the cryptocurrency development are vested with a single authority. He /She is responsible for all the development or failure of the centralized cryptocurrencies. The organization controls the functioning of centralized cryptocurrencies, as they are providing security, servers, gain feedback, certain crucial decisions with respect to the centralized cryptocurrencies, etc. However, one major drawback is that since the centralized cryptocurrencies are in the control of a particular organization, the future of the cryptocurrency coin, completely depends upon the organization itself.

How is centralization creeping into the decentralized crypto economy?

Generally, it is assumed that no one controls the Blockchain network but the fact is that the companies maintaining the centralized cryptocurrencies can tamper the blockchain or undertake decisions with respect to the centralized cryptocurrencies which are in their point of interest. In fact, at some point in time, all the Chinese Bitcoin mining pools accounted for 70% of the whole Blockchain network which was a very important matter of concern.

Many cryptocurrency professionals in the field like Nick Szabo, Vitalik Buterin, Charlie Lee, etc. have accepted the fact that they are in no control of their respective  decentralized cryptocurrencies, but officially and subconsciously, each and every decision and opinion with respect to the Decentralized cryptocurrencies effect have a profound influence on the development of the decentralized cryptocurrencies too. Therefore, in this highly competitive world, it is highly impossible to achieve absolute decentralization of cryptocurrencies.

 

Bottlenecks in centralized cryptocurrencies

The centralization of cryptocurrencies predominantly means that the power is not distributed among the participants of the project network, but in reality, the decisions of the small investors are responded with shrugging shoulders. They need to raise their voice in order to be heard by the developing team in order to improve the Centralized cryptocurrencies for everyone.

Mining issue

There is another great drawback of centralized cryptocurrencies which needs to be highlighted. It is nothing but, the mining process.  As we have been observing that due to the complex mining capabilities required by the blockchain in order to undertake the process of mining centralization has taken place as many big organizations are able to buy those types of equipment.  The mining centralization might not seem to be important but it is the most dangerous and vulnerable part of the entire centralized cryptocurrencies. Imagine, if just in case, the top 3 mining pools collaborate with each other they would be able to control the complete blockchain network.  

 

The positive side of Centralised cryptocurrencies

The Centralized cryptocurrencies also have many advantages with it. Since there is a centralized authority taking responsibility for the development or failure of the centralized cryptocurrencies, one seems to gain a sense of reliability and openness. These Centralized cryptocurrencies have also been witnessed to solve major scalability as well as security issues, which emerged with the development of the cryptocurrency domain.  Terminologies like Delegates, Masternodes, Federations, as well as Witnesses, refer to the solutions proposed which are in turn centralization concepts itself.

These days it is observed that some of the cryptocurrency coins are just like the crypto counterparts of PayPal or Visa. The amount of centralization of cryptocurrencies can be witnessed here. One of the major cryptocurrency among many other centralized cryptocurrencies is listed below.  

 

Ripple

The real-time gross settlement payment system is incorporated mainly by the banks and other major Financial Institutions throughout the world. The cryptocurrency among many other centralized cryptocurrencies increases the processing capabilities by empowering the financial economy with the Blockchain Technology. Also, the Unique Nodes List is exclusively chosen by the key people of the cryptocurrency project itself.

Continue Reading
Advertisement Cryptocurrency & Blockchain Domain Names
20 Comments

20 Comments

  1. Pingback: Centralized Cryptocurrencies explained. – Btc News Magazine

  2. Pingback: Centralized Cryptocurrencies explained. – The Coinage Times

  3. Uebari Friday

    August 23, 2018 at 8:39 pm

    The reason for the quest for centralisation is governance.If cooperations are to adopt cryptos, then networks cannot just be left open to any participant. Persons must be responsible for its daily operation, rules must be made ans punishments dished-out, network issues resolved, etc. Although we all welcome decentralisation, the challenges of scalability, blockchain-based technologies, security and implementation in various sectors can only be done in governed networks.

  4. Pingback: Centralized Cryptocurrencies explained. – CRYPTOTIMES.MOBI

  5. Pingback: What is Noah Coin? Trade Noah Coin on Blockonix Exchange. | E-Bitcoin News Portal

  6. Pingback: Why Ripple investment is great for 2018. | Pearl of Haiti

  7. Pingback: Is Ethereum going to rise in 2018? – News Bitcoin Today

  8. Pingback: Is Ethereum going to rise in 2018? – Bitcoin News

  9. Pingback: Is Ethereum going to rise in 2018? – COIN MAG

  10. Pingback: Bitcoin will soon be above $20k, Conan O Bitcoin says on twitter – Coinance Bitcoin, Ethereum, Blockchain & Cryptocurrency News

  11. Pingback: Coinmarketcap Analysis: The platform, team and the tools. – Coinance: Bitcoin, Ethereum, Blockchain & Cryptocurrency News

  12. Pingback: BCH Money Button: Bitcoin Cash vs Bitcoin – Coinance: Bitcoin, Ethereum, Blockchain & Cryptocurrency News

  13. Pingback: Bitcoin Bull Tim Draper says 1 BTC will be worth 2 Million or more – Coinance: Bitcoin, Ethereum, Blockchain & Cryptocurrency News

  14. Pingback: Controvery, BTC vs BCH, Jimmy Song vs Roger Ver – Coinance: Bitcoin, Ethereum, Blockchain & Cryptocurrency News

  15. Pingback: Can ADA reach $0.1 today? Cardano Price Analysis 24 Sep – Online Coin News

  16. Pingback: BTC to $28000 by 2019: Trader Explains – Coinance: Bitcoin, Ethereum, Blockchain & Cryptocurrency News

  17. Pingback: Can ADA Hit a Home Run? Cardano Price Analysis 20 Sep – Coinance: Bitcoin, Ethereum, Blockchain & Cryptocurrency News

  18. Pingback: Bitcoin, Crypto and Iranian Digital Rial - LCCN

  19. Pingback: Bitcoin, Crypto and Iranian Digital Rial – BTC News Paper

  20. Pingback: Bitcoin, Crypto and Iranian Digital Rial – Coins News Update

Leave a Reply

Your e-mail address will not be published. Required fields are marked *

#Blockchain

Forbes releases top 50 blockchain companies list

Published

on

Forbes has released top 50 blockchain companies using blockchain technology list and these are almost all household names of the world's largest companies.

Forbes has released a new top 50 blockchain companies using blockchain technology list and these are almost all household names of the world’s largest companies. In fact, they are all billion dollar plus companies such as Amazon, Citi Group, Foxconn, Comcast and a whole host of others and unsurprisingly the bulk majority of these companies are using Ethereum.

 

Although, outside of Ethereum which is, of course, the number 1 blockchain for these companies, we do see others like Hyperledger and Quorum for example, although much rarer on the list in terms of mentions are blockchains such as Stellar Lumens or Cardano. Blockchains such as TRON, EOS, NEM, and others are not mentioned in the list of top 50 companies.

 

Companies choosing Ethereum according to Forbes:

Big businesses really like what Ethereum is doing. Ethereum has also worked very hard to make these relationships happen over the last few years and those relationships are now paying dividends big time.

 

All the top 10 companies are located in China or the United States.

The Top 10 (Forbes List):

10. Ping An Insurance Company: China

9. Bank of China: China

8. Apple: United States

7. Wells Fargo & Company: United States

6. Bank of America: United States

5. Agricultural Bank of China: China

4. Berkshire Hathaway Inc: United States

3. JPMorgan Chase & Co: United States

2. China Construction Bank Corporation: China

1. Industrial and Commercial Bank of China: China

 

Continue Reading

#Blockchain

JPMorgan expanding itself into the blockchain and crypto space

Published

on

JPMorgan Chase has been posting a lot of job opportunities in the blockchain and cryptocurrency industry on Indeed.com, the job listing portal.

JPMorgan Chase, the American multinational investment bank and financial services company has been posting a lot of job opportunities in the blockchain and cryptocurrency industry on Indeed.com, a job listing site. According to the data from Indeed.com, the overall job openings for the cryptocurrency industry also seems to be on a rise.

 

JPMorgan Entering the Cryptocurrency Space:

Though the CEO of JPMorgan, Jamie Dimon has always been a strong opponent of Bitcoin and other cryptocurrencies, his company has been interestingly expanding its operations in the field of blockchain and cryptocurrency.

 

Last month, JPMorgan launched its own cryptocurrency known as the JPM Coin, which will serve the bank’s precious customers in order to make transactions between them more swift and steady.

 

Back in 2018, JPMorgan had launched a blockchain powered platform known as Quorum which might be seen quite homogeneous to bitcoin and ethereum, however, it is almost fully centralized in nature.

 

Large companies entering the Blockchain Space:

In recent times, a lot of huge companies worldwide have been entering into the blockchain and cryptocurrency space. According to a recent publication by the Forbes, large organizations such as IBM, Deloitte, Cisco, Microsoft, Consensus, and others have been curiously hiring employees that are experts in the field of blockchain technology.

Continue Reading

#Blockchain

Adoption: Courts in France adopt blockchain technology

Published

on

The NCC or National Council of Clerks of France have finally tested a blockchain technology-based solution for the courts of the country.

The NCC or National Council of Clerks of France recently made an announcement that they have finally tested a blockchain technology-based solution for the courts and are now prepared to launch it throughout France. The National Council of Clerks is a representation of the clerks of the corporate and commercial registry in around a hundred thirty-hour workplaces in France. The workplaces depend upon one another for sharing important data.

 

The goal of NCC France

The NCC is determined to streamline and position the latest information technology that capitulates something that is known as ‘the single version of the truth’. The data tracks an organization’s growth, dissolution, change of location etc. The sharing of data amongst each other was earlier a big challenge for the NCC.

 

The project based on blockchain technology had an aim of rapid cycle times and precision of information. In the pilot phase of the project, the National Council of Clerks in France was able to lessen the timing of registry operation involving a lot of days to just one day.

 

According to the president of France National Council of Clerks, Sophie Jonval, the project based on blockchain technology is an outcome of the partnership with IBM. IBM who is already an expert in blockchain technology and cryptography has been serving as a technological partner.

 

According to the NCC, the project shall be rolled out in the 1st half of 2019 and the project shall ensure a transparent and improved dynamics of the interactions between the clerks.

Continue Reading

Keep up with Bitcoin & Blockchain Technology Trends

Simply enter your email address in the box below and sign up for emails from Coinnounce regarding trending cryptocurrency, bitcoin & blockchain topics and offers.

This information will never be shared with third parties.