Justin Bons Said Ethereum is More Decentralized Than Bitcoin

[OddJobsForBitcoin]

I've always suspected that big players like Bitmain could build a lot of hashrate to increasingly centralize Bitcoin. For the experts in the house, how true is it that Ethereum is more decentralized than Bitcoin? Could it be the reason the SEC isn't bothering Ethereum and may even approve spot ETH ETF?

Here's what he wrote:

"Bitcoin (BTC) – Score: 29/60
Bitcoin, the pioneer of blockchain technology, showcases a strong foundation in certain aspects of decentralization:

Validator Count: It has the second-highest validator count, earning an 8/10.
Client Ecosystem: Dominated by Bitcoin Core, leading to a 1/10 score.
Permissionless Nature: Scores a perfect 10/10, with no permissioned elements.
Governance: Lacks on-chain governance, resulting in a 0/10.
Consensus Mechanism: Proof of Work (PoW) without native delegation, scoring 5/10.
Community Diversity: A growing “wizard faction” contributes to a 5/10 score.
Ethereum (ETH) – Score: 43/60
Ethereum leads in decentralization, thanks to its robust validator ecosystem and client diversity:

Validator Count and Client Ecosystem: Achieves top marks in both, with a 10/10 for the highest validator count and most diverse client ecosystem.
Permissionless and Governance: Shares Bitcoin’s lack of on-chain governance, scoring 0/10, but is fully permissionless, scoring 10/10.
Consensus Mechanism: Transitioned to Proof of Stake (PoS) without native delegation, earning a 7/10.
Community: Its vast ecosystem with many united factions scores a 6/10.
Solana (SOL) – Score: 32/60
Solana presents a mixed picture with high validator counts but challenges in its consensus mechanism:

Validator Count: A high validator count scores 7/10.
Client Ecosystem: A reasonably diverse ecosystem earns a 7/10.
Permissionless Nature: Like Ethereum, it scores a 10/10.
Consensus Mechanism: Proof of History (PoH) and high node requirements lower its score to 2/10.
Governance: Has plans for on-chain governance, scoring 3/10.
Community: A big ecosystem with few factions scores a 3/10.
XRP (Ripple) – Score: 17/60
XRP struggles with decentralization, particularly in validator diversity and permissioned elements:

Validator Count and Client Ecosystem: Scores the lowest in these categories, with 1/10 and 0/10 respectively.
Permissioned Elements: The presence of permissioned elements further reduces its score to 0/10.
Governance and Community: No plans for on-chain governance and a small ecosystem with powerful factions result in low scores.
Cardano (ADA) – Score: 35/60
Cardano shows promise with high scores in permissionless nature and plans for on-chain governance:

Validator Count: A high unique validator count scores 7/10.
Permissionless Nature: Scores a perfect 10/10.
Consensus Mechanism: Native delegation and plans for on-chain governance contribute to higher scores in these areas.
Avalanche (AVAX) and TRON (TRX)
Both blockchains present unique cases in decentralization, with Avalanche showing strength in its governance model and TRON in its fully implemented on-chain governance."

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[Sandra_hakeem]

I've always suspected that big players like Bitmain could build a lot of hashrate to increasingly centralize Bitcoin. For the experts in the house, how true is it that Ethereum is more decentralized than Bitcoin?

Bitcoin was solely made to replace the usual currency - FIAT. I'm gonna say, it hasn't fulfilled its purpose entirely but this whole decentralization was put in place through that path; a path that ethereum only improvised on some protocols ... maybe like introducing smart contracts, DEFIs and NFTs... That doesn't make the coin more decentralized than Bitcoin, does it?

if ethereum is so decentralised.. then why is its market rate not independent
just look at the prices of the markets. ethereum follows bitcoin like a shadow 9#% of the time.

exactly! Why hasn't it grown beyond it's 4k limit since 2021? Secondly, what's this DApps liverage that made ethereum to create a version of BTC on Thier network? Read about that a couple of weeks ago and I didn't go into details anyway.

Sandra 🧑‍🦰

[_act_]

You mean Justin Sun, not Justin Jon.

Ethereum was an ICO. Some of its supplies were premined just like other centralized coins.

Ethereum went from PoW to PoS. Which is another centralization. If you do not have a certain amount of ETH, you can not be a validator which is a protocol.

If people should said which one is centralized, it is Ethereum.

Bitcoin developers were not the one that created BRC tokens and Ordinal NFTs. Ethereum created ERC tokens.

[franky1]

if ethereum is so decentralised.. then why is its market rate not independent
just look at the prices of the markets. ethereum follows bitcoin like a shadow 9#% of the time.

it doesnt have its own independent sentiment of market utility, so is not wildly different compared to bitcoin. so just centrally follows bitcoin based on the bitcoin market sentiment
in short there are not enough ETH people valuing ethereum independently to depeg ethereum from just being used as a shadow arbitrage tool for bitcoiners

from may 2021 ethereum lost its independent sentiment of utility and just became a shadow to bitcoins market.. ranging from 1btc:12eth to 1btc:20eth, slowly staying close 9#% of the time but slowly losing its own value by not being able to keep up with a 1btc:12eth peg
notice how wildly independent ethereum:btc was pre may 2021.. and then how pegged, stable it became after may 2021

[Pandorak]

I'm not an expert here, it's just that as far as i know bitcoin & ethereum have different structures for decentralization, bitcoin uses proof of work while ethereum uses proof of stake and clearly proof of work is more decentralized.

if ethereum is so decentralised.. then why is its market rate not independant

just look at the prices of the markets. ethereum follows bitcoin like a shadow. from may 2021 ethereum lost its independent sentiment of utility and just became a shadow to bitcoins market.. ranging from 1btc:12eth to 1btc:20eth, slowly staying close 9#% of the time but slowly losing its own value by not being able to keep up with a 1btc:12eth peg
notice how wildly independent ethereum:btc was pre may 2021.. and then how pegged, stable it became after may 2021

Technology and prices don't always go hand in hand, i'm not here for ethereum but just to straighten out point of view about the relationship between technology and prices. shiba inu has a larger market cap than litecoin according to coinmarketcap data ^[1], so does that make shiba inu technology greater than litecoin? not at all.

[1] https://coinmarketcap.com/

[Ambatman]

Ethereum leads in decentralization, thanks to its robust validator ecosystem and client diversity

Not when they are using proof of stake where one with the biggest gun takes the shot.
Talks about diversity? What's diversity where there are 100's of ant and few elephants
The more money staked
The more control one gets
So how's something of this nature more decentralized than Bitcoin.

shiba inu has a larger market cap than litecoin according to coinmarketcap data [1], so does that make shiba inu technology greater than litecoin? not at all.

This is different
Shiba inu is a meme while Litecoin is a failed Bitcoin knock off
He's not comparing technology to price
What he meant is that if Ethereum is so great it's price movement wouldn't be mirroring Bitcoin and this became worse after the switch to POS.
Ethereum became more centralized after their so called upgrade.

[franky1]

I'm not an expert here, it's just that as far as i know bitcoin & ethereum have different structures for decentralization, bitcoin uses proof of work while ethereum uses proof of stake and clearly proof of work is more decentralized.

if ethereum is so decentralised.. then why is its market rate not independant

just look at the prices of the markets. ethereum follows bitcoin like a shadow. from may 2021 ethereum lost its independent sentiment of utility and just became a shadow to bitcoins market.. ranging from 1btc:12eth to 1btc:20eth, slowly staying close 9#% of the time but slowly losing its own value by not being able to keep up with a 1btc:12eth peg
notice how wildly independent ethereum:btc was pre may 2021.. and then how pegged, stable it became after may 2021

Technology and prices don't always go hand in hand, i'm not here for ethereum but just to straighten out point of view about the relationship between technology and prices. shiba inu has a larger market cap than litecoin according to coinmarketcap data ^[1], so does that make shiba inu technology greater than litecoin? not at all.

[1] https://coinmarketcap.com/

i never even mentioned market cap. and has nothing to do with market cap
its got nothing to do with and i never said who was the greatest..

point is

if 2 different projects that do 2 different things. had 2 different sets of communities valuing 2 projects differently. where the projects evolve separately and upgrades happen at different times to drive sentiments of value and supply/demand to differ.. all at different times for totally different independent reasons
then there would NOT BE soo close a shadow, peg, copy of one market on the other

yet because ethereum does not have much of its own independentness to drive its own value sentiment. then it ends up just centrally copying the better currency, emulating it and using it to try finding value as it doesnt have much independent value demand/supply of its own to counter the zombie chase

..
 i could move onto other examples of ethereums lack of independence,, you know STAKING.. hint is in the name so needs no explanation

[Zaguru12]

I don’t understand the whole decentralization comparison when it is crystal clear the bitcoin nodes and how it works explain a true decentralized network, just any one can be part of the node but that doesn’t relay to Ethereum chain where validators are mostly the center of attention for the network decision making which defeats the whole point of decentralization.

[South Park]

I don’t understand the whole decentralization comparison when it is crystal clear the bitcoin nodes and how it works explain a true decentralized network, just any one can be part of the node but that doesn’t relay to Ethereum chain where validators are mostly the center of attention for the network decision making which defeats the whole point of decentralization.

Do not think too much about this, whenever you read statements like that you need to think about the intention behind them, and it is obvious this is an attempt to try to make altcoins more appealing than bitcoin and hype them for the upcoming bull run, while trying to keep bitcoin in check at the same time, will it work? I suppose, especially with those that know nothing about this market, but for those that have been around for some time we can easily see the intent behind it.

[Natsuu]

I don’t understand the whole decentralization comparison when it is crystal clear the bitcoin nodes and how it works explain a true decentralized network, just any one can be part of the node but that doesn’t relay to Ethereum chain where validators are mostly the center of attention for the network decision making which defeats the whole point of decentralization.

Do not think too much about this, whenever you read statements like that you need to think about the intention behind them, and it is obvious this is an attempt to try to make altcoins more appealing than bitcoin and hype them for the upcoming bull run, while trying to keep bitcoin in check at the same time, will it work? I suppose, especially with those that know nothing about this market, but for those that have been around for some time we can easily see the intent behind it.

Yep. In the crypto world, talks about decentralization can be a sneaky way to hype up altcoins and make them look better than Bitcoin. This comparison like giving Ethereum a higher decentralization score seems like a move to grab attention and build excitement especially for the upcoming bull run. If you've been in the game for a while, you can see through the marketing tactics. It's a reminder to stay sharp and not get swayed by the buzz because there's often more to these comparisons than meets the eye

[wallet4bitcoin]

I know Justin Sun as  a good marketer but not much of an analyst who says what the opinion of users are currently.


He has a whole lot to attend to on the chains he controls, he should focus more on making them usable and globally accepted and used just like Ethereum and Bitcoin rather than give us analysis that does not resonate with a whole lot of people.

I consider his opinion baseless and should be discounted as a point to consider by anyone in the space.

[headingnorth]

Is this a joke? Ethereum had a pre-mine with founders backed by big money VC investors that dumped on retail.
That is the exact opposite of decentralization and the precise definition of a security pump and dump.

If that wasn't bad enough, the founders of ethereum have been pushing heavily for US central bank CBDCs to run on the ethereum network.
They have published a white paper on how this should be accomplished and make no secret about their intentions.

The white paper is freely available on the Consensys website, a company founded by ethereum devs to support ethereum.

In light of all this, the idea that ethereum is decentralized in any way shape or form is completely laughable.

Central Banks and the Future of Digital Money
An introduction to central bank digital currencies (CBDCs), their advantages for retail and wholesale payments,
and a proposed architecture for a successful implementation on Ethereum.

https://consensys.io/solutions/payments-and-money/cbdc

[riantolie]

I don’t understand the whole decentralization comparison when it is crystal clear the bitcoin nodes and how it works explain a true decentralized network, just any one can be part of the node but that doesn’t relay to Ethereum chain where validators are mostly the center of attention for the network decision making which defeats the whole point of decentralization.

The funniest thing is that BTC doesn't have CEO, it's just works. But ETH has Vitalik, who can do whatever he wants with it. It can't be decentralized by definition.

[adaseb]

Bitcoin is more centralized because the miner rigs are spread out throughout the world. It used to be centered around China but lately it has expanded into many countries and it’s fairly distributed.

Ethereum was more decentralized when it was POW, many people just mined with their gpus and did it as a hobby. But now you need to own a large amount of ETH to be able to stake. Most retail cannot afford this amount, it’s mostly centered around the rich.

[Despairo]

You mean Justin Sun, not Justin Jon.

@OP is correct, this is his twitter https://x.com/Justin_Bons?s=20

Bitcoin, the pioneer of blockchain technology, showcases a strong foundation in certain aspects of decentralization:
Validator Count: It has the second-highest validator count, earning an 8/10.

Ethereum leads in decentralization, thanks to its robust validator ecosystem and client diversity:
Validator Count and Client Ecosystem: Achieves top marks in both, with a 10/10 for the highest validator count and most diverse client ecosystem.

Incorrect.

Bitcoin has 18,215 nodes, while Ethereum has only 6,347 nodes. So BTC has more validators than ETH, the real validator is the one who run full node, not someone who stake their tokens to earn interest.

But this isn't surprising at all since he's a Bitcoin hater, just like Warren Buffet. He wrote an article about 14 reasons to not invest in BTC.

[PrivacyG]

No matter how you take it.  There is no way Proof of Stake can ever be more Decentralized than Proof of Work.  This is all we need to say.  Ethereum puts the Wealthy into control.  Bitcoin gives every body the control handle.

Ethereum is what started as a heavily Centralized Cryptocurrency and is now choosing to only become slightly more Centralized every now and then.  If you want a comparison, make a legitimate and fair one.  These are incomparable.

[pooya87]

For as long as bitcoin existed and the alternative coins market was created, some people started bag holding shitcoins and then started advertising them as "better than bitcoin" in order to get them hyped up and consequently pumped so that they can make some money from that pump.

Ethereum as the biggest centralized shitcoin is one of those altcoins that people usually claimed is "better than bitcoin" in different aspects like decentralization, speed, fee, price, security, ... but the reality is that they are all worse in all those things without exception.

[PrivacyG]

Ethereum as the biggest centralized shitcoin is one of those altcoins that people usually claimed is "better than bitcoin" in different aspects like decentralization, speed, fee, price, security, ... but the reality is that they are all worse in all those things without exception.

Look even at the largest Tokens it has.  Centralized Tokens on an already Centralized Cryptocurrency.  It is the worst mixture you can get.

Buy USDT!  Be happy holding a Cryptocurrency that can be seized at any given point in time.  Or just frozen so you can experience the dread of never being able to use your own money again.  How nice is that, yes?

[m2017]

You mean Justin Sun, not Justin Jon.

OP calls the name Justin Bons. Bons, Jon, Sun - so who are we talking about (the topic title displays all this variety of names)?  So who is this crypto-guru whose words we should fully heed?
 

Ethereum was an ICO. Some of its supplies were premined just like other centralized coins.

For me, a clear sign of the lack of decentralization is the presence of a founder / founders (Buterin is not the only one behind the entire project), who have a huge influence on the project Ethereum.

if ethereum is so decentralised.. then why is its market rate not independent
just look at the prices of the markets. ethereum follows bitcoin like a shadow 9#% of the time.

But won’t Justin Jon OP say to this that bitcoin follows ethereum like a shadow.

[LoyceV]

Ethereum is the shitcoin that abandoned it's one USP "Code is law" the moment is was convenient for the rich creator and his friends. The guy in charge created a hard fork to protect their money instead of being a reliable block chain. The fact that it's centrally controlled is really all you need to know.