Is crypto becoming centralized?

[Abiky]

As crypto hits the mainstream, more businesses and companies are joining the game. We've seen innovations from NFTs to security tokens, and stablecoins. Most of the coins being traded on the market have smart contract functionalities, making them multi-purpose platforms for real world use. While all of this sounds nice, there's been an increasing rate of centralized exchange dominance over the past years. Not only that, but alternative cryptocurrencies (altcoins) have been prioritizing convenience on top of decentralization in order to provide people with lower fees and blazing-fast transaction confirmation times.

Most recently, Lightning Labs announced the creation of a new stablecoin that will operate in its "Taro" platform. If companies start to embrace stablecoins on top of traditional cryptocurrencies, then the whole industry will become heavily centralized. This should be a cause of concern, as a full government crackdown (or ban) could mark the end of crypto's prominence in the mainstream world.

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

[Yogee]

Let's set aside stable coins for the meantime and focus on the fact that many chains today rely on centralized infrastructures to keep them running. Even most of the Ethereum nodes are hosted on Amazon Web Service. Validator nodes have become less like the Binance smart chain with only 21. Let's also add that projects built on top of these chains can be paused when the devs find it necessary. So is crypto becoming centralized? It's a yes for me.

[Yamifoud]

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

I'm considering the fact that the regulations will help to stop non-profitable investments, scams, and fake projects. I'm in favor to have such regulations for this it helps people to put an investment as they can assure that their fund is safe...well, this is a positive side

But if we talk about the negative impact on the user and investor's ends, these things we possibly get,
 * taxes
 * high fees
 * controlled market price
 * they can freeze our accounts and seize our money
 

[Naficopa]

As crypto hits the mainstream, more businesses and companies are joining the game. We've seen innovations from NFTs to security tokens, and stablecoins. Most of the coins being traded on the market have smart contract functionalities, making them multi-purpose platforms for real world use. While all of this sounds nice, there's been an increasing rate of centralized exchange dominance over the past years. Not only that, but alternative cryptocurrencies (altcoins) have been prioritizing convenience on top of decentralization in order to provide people with lower fees and blazing-fast transaction confirmation times.

Most recently, Lightning Labs announced the creation of a new stablecoin that will operate in its "Taro" platform. If companies start to embrace stablecoins on top of traditional cryptocurrencies, then the whole industry will become heavily centralized. This should be a cause of concern, as a full government crackdown (or ban) could mark the end of crypto's prominence in the mainstream world.

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

I also noticed the same. Unfortunately, if someone wants to operate in the open mainstream and in the world of cryptocurrencies, he must undergo regulation and require KYC verification to function legally. However, the cryptocurrency market is constantly evolving, so I think many companies will only operate in the cryptocurrency market and they will avoid regulation and operate anonymously. I think that everyone will find something good for themselves. It's just that everyone will take a piece of the cake for themselves, but it looks like regulated companies are taking more and more of it.

[ajochems]

Some factors may seems to be look of crypto as a centralised one.But it’s not a centralised one.Mainly price of crypto currency,includes the bitcoin.When the demand in the market was increased to the bitcoin,the price of bitcoin automatically increased.Like the same way,the decrease in the price of bitcoin was happened with the help of the crypto currency.Ethereum is centralised crypto.

[jossiel]

Likely.

But it's part of the growth of the market for being decentralized, there could be huge companies that can come in and make their own monopoly. Sad but true and we have to embrace this reality.

And the thing is that, it's becoming a divided side like many cryptos are only for trading and there goes the others that are mainly used for transactions.

[cryptomaniac_xxx]

Still 50/50 in my opinion, centralization has being a thing right now, and although it goes against the basic of crypto, but still it has somewhat grow a bit that those involved doesn't care about the so called no authority and distributed power amongst validators, nodes, project owners or developers. So I guess it is not bad after all as we are still moving forward and making good progress.

[Orange89]

Yes it is true, crypto is becaming moreover Centerlized with each day .it is happening due to the government what i fell ,all they want is to examine us , well in Developing country like India the tax amount is rising 30% tax and the major issue is government is not happy with the Tax percentage and they wanted to increase it to 50% i means seriously all they wanted us to give tax but their are many good exchanges like Kucoin where their is no need of kyc for Depositing and withdrawaling and their is also one good news Polka Bridge is Announcing a decentralized P2P that's really good and it will live from July so let's hope for best

[goaldigger]

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

We want adoption right? And in order for that to happen it needs to be regulated so other big companies can freely adopt and do business here as well, this is beyond our control because the government sees the threat and they can’t easily allow this platform to freely work within their territory without regulations. We are slowly getting there, so be ready but still they can just regulate but not to fully control the market, more probably they just want to collect taxes here.

[wheelz1200]

As crypto hits the mainstream, more businesses and companies are joining the game. We've seen innovations from NFTs to security tokens, and stablecoins. Most of the coins being traded on the market have smart contract functionalities, making them multi-purpose platforms for real world use. While all of this sounds nice, there's been an increasing rate of centralized exchange dominance over the past years. Not only that, but alternative cryptocurrencies (altcoins) have been prioritizing convenience on top of decentralization in order to provide people with lower fees and blazing-fast transaction confirmation times.

Most recently, Lightning Labs announced the creation of a new stablecoin that will operate in its "Taro" platform. If companies start to embrace stablecoins on top of traditional cryptocurrencies, then the whole industry will become heavily centralized. This should be a cause of concern, as a full government crackdown (or ban) could mark the end of crypto's prominence in the mainstream world.

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

Well since crypto was pretty much created to combat centralization so if you partake in centralized crypto, using exchanges as your wallet, etc it's your own fault.  Evolution leads to businesses trying to profit off of it but it's a create your own adventure, don't partake and stick to the origination of what crypto is here for.

[Scripture]

Unfortunately yes, we are slowly getting there, let’s just hope that decentralized platform will stay and can still compete with the centralized platform because if not then crypto might collapse. If many big companies will adopt, regulation is a must to some government, and we cannot escape from that since government still have the control over their people and companies.

[goinmerry]

We have to look on the bright side. Keeping in touch in the centralization won't really hurt at all. During a time when crypto is about pure anonymity and even crypto-related companies are private, where do people go for help in an event of a scam? The authorities have even no clues where to start if they are investigating these scams. If only people are wise and scams are not that big an issue before, the government won't be bothered to put centralization on crypto.

Before, crypto exchanges don't have KYC but to protect their users, they are now obliged to make it a mandatory requirement which turned out good overall.

I'm against a pure centralization but to fully enjoy the advantages of crypto, no choice but to hug the centralized part. What choice do we have in the first place?

[qwertyup23]

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

I'm considering the fact that the regulations will help to stop non-profitable investments, scams, and fake projects. I'm in favor to have such regulations for this it helps people to put an investment as they can assure that their fund is safe...well, this is a positive side

But if we talk about the negative impact on the user and investor's ends, these things we possibly get,
 * taxes
 * high fees
 * controlled market price
 * they can freeze our accounts and seize our money
 

There are always some negative impact if we were to embrace centralization from cryptocurrencies. But to be honest, centralization goes against the vision of what Satoshi imagined as it somehow defeats the purpose of creating a decentralized currency.

The question is, is centralization essential in order to combat the aforementioned issues of scams, hacks, etc. ? I do not think so. While there may be scams and fake projects, a diligent person may be able to overcome it by being responsible. Though one thing that he cannot control are the hacking of exchanges, but this can be resolved if you were to move your coins to your respective hardware wallet.

Though centralization of some coins may sound feasible, this would disrupt the balance and vision of having a decentralized currency which is free from any control.

[TastyChillySauce00]

Basically most of cryptos were totally centralized. I think that crypto can't become truly decentralized and only some crypto like bitcoin that was truly decentralized. The rest was totally centralized caused by it was controlled by the regulators, developers or using a few nodes that make it can be controlled by a few entities that can create collusion between one to the another entities.
It's clear if crypto is slowly moving to the centralization.

[magneto]

As crypto hits the mainstream, more businesses and companies are joining the game. We've seen innovations from NFTs to security tokens, and stablecoins. Most of the coins being traded on the market have smart contract functionalities, making them multi-purpose platforms for real world use. While all of this sounds nice, there's been an increasing rate of centralized exchange dominance over the past years. Not only that, but alternative cryptocurrencies (altcoins) have been prioritizing convenience on top of decentralization in order to provide people with lower fees and blazing-fast transaction confirmation times.

Most recently, Lightning Labs announced the creation of a new stablecoin that will operate in its "Taro" platform. If companies start to embrace stablecoins on top of traditional cryptocurrencies, then the whole industry will become heavily centralized. This should be a cause of concern, as a full government crackdown (or ban) could mark the end of crypto's prominence in the mainstream world.

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

Yes, it is, but I think it is a necessary evil. Just look at SOL for example, it is popular, yet centralised.

To scale effectively some decentralisation needs to be forgone. I don't necessarily see that as a problem as long as the users of the blockchains are informed and agree to use the protocol as is.

Bitcoin is still going to be the most decentralised coin for a long time, which is why alts may not be able to displace BTC on a market cap basis for a while.

[killerfrost]

...If companies start to embrace stablecoins on top of traditional cryptocurrencies, then the whole industry will become heavily centralized. This should be a cause of concern, as a full government crackdown (or ban) could mark the end of crypto's prominence in the mainstream world.

So how can you be satisfied? Such a change, I think, is reasonable and necessary when we have to admit that the interest from large companies has impacted confidence in the success of the market. This school is more. And on top of the issue of stablecoins affecting the centralization of the market, it's funny how the rise of stablecoins will dominate the issue of control. Positive thinking on them creating stablecoins for centralization star? I haven't seen so much popularity so far. Of course, every major platform provides fixed assets to create stables that help ensure people's trust, so it's not empty, but today we need more attention from large corporations to the industry, so you have reason to be afraid.

[cryptoaddictchie]

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

Some who dont like centralized will slowly get away from blockchain. But centralization only restrict only those scammers and law abiding citizen, whereas they cant completely do their scamming activity. It doesnt mean cryptocurrency industry will tremble in chaos or panic, but only those who are doing malicious activity.

[bitkanu]

It seems true. The regulation will make crypto to be even more centralized than before. That being said that if crypto is not so decentralized right now. I must also remind you that when you are seeing what happened with so many second layer blockchain and you will aware if these blockchains have less and less nodes. Just like some blockchains that exist in the market i.e BSC, polygon and many more. These days people are also preffering to use POS rather than POW which was making the blockchain to be truly centralized due to the energy consumption.
I think that if you are also aware about this too about how centralized the majority of blockchains these days.

[bitzizzix]

Maybe or not in the future no one knows and nothing is impossible in this world and technology is constantly evolving.
and for bitcoin, the whole idea behind bitcoin is to create a decentralized currency, one that is free from governments and banks.
and if someone and anyone somehow manages to centralize it, it means that bitcoin has failed to achieve its original purpose and it will become worthless.

[coin-investor]

Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.

The big concern now is free from scams and projects that do not live up to expectations, I still believe in decentralization but to many bad actors that are hard to trace or prosecute, many bad projects where developers only want the profit side, the industry adhere to centralization to protect investors and the community, there are sides that are decentralized and there are sides that are centralized, decentralization is something that can help adoption.