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Bitcoin Undergoing Decentralization Dilemma

Bitcoin Undergoing Decentralization Dilemma

Digital crypto currencies and especially Bitcoins are known for their decentralized setup and this is exactly what made so popular. However, from the looks of it, this is about to change! The way this world works is, mighty is the one who has access and control over the information and through this privy information, they are able to alter the fate of economy and policies of the world. However, decentralized nature of crypto-currencies is anything but empowerment of a small group. It takes the control of money from the hands of few and places it in the hands of many. This concept will not sit well with that group of entities that are accustomed to calling the shots.

Bitcoin’s scale may become unmanageable

However, as the currency moves towards global acceptance, the network will have to be scaled to meet growing demands and it will become difficult for the entire network to be managed after sometime. This is when the currency will have to be moved towards recentralization. Anyone who has access to the resources will once again achieve control over the core network and this so called disruptive technology will be normalized within a matter of time.

VoIP saw it too

When VoIP came into existence, the technology was considered disruptive and revolutionary. The speculators called it the next big thing that will uproot the telecommunication giants by providing decentralized telecom networks shared over internet. However, we all know how “decentralized” VoIP is now!

The same fate is expected of Bitcoins. Once the mining pool grows in size, bitcoin infrastructure would need the help of large entities to support it under their collective control and thus making the system centralized, inadvertently.

In fact BlockChain technology has been taken far more into consideration than the Bitcoins itself. BlockChain eliminates the need for third party intervention like Central Bank or other such financial institutions to validate the transactions. This is possible because of the distributed process followed by the principle technology.

BlockChain gains more traction

BlockChain has obviously seen more action and has already been adopted by many for variety of reasons. It is through this technology that the need for middlemen has been eliminated. It can also be used to manage othe financial products like equities, derivatives, securities etc. BlockChain can also be used for authentication of documents.

Although future of Bitcoin is bleak at best, the technology has definitely been used and will be used continually for variety of purposes for the years to come.         

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