Is Political Centralization Blockchain Unstoppable?
Bad design and greed are forcing the blockchain industry into an oligopolistic structure. If the issues are not met today, blockchain will be under the grip of political parties which would kill the basic idea of the technology.
After years of struggle the technology has reached the heights of popularity it enjoys today, but management and processing of a huge number of secure transactions are proving to be tricky for it. As a result, the projects are being tilted towards a Delegated Proof of Stake (DPOS) as a protocol of general agreement.
The main characteristic of a Delegated Proof of Stake (DPOS) is high throughput reaching up to 100,000 transactions per second, short block production times and almost no bifurcation. DPOS is designed in a way that representative delegates continue operations for the blockchain. The supporters of DPOS claim that continuous shareholder elections in the system eliminate the issues prevailing in PoS. In DPOS block producers are elected by coin holders who undertake the challenge of recording blockchain’s history and the generation of new blocks.
As of now, EOS is the biggest project running on DPOS by market value. Although it can be regarded as a success yet, it has overpowered smaller enterprises that do not have the same technical enterprise. It kills the vibe which was created by the technology in its early days. Back then anybody with a computer and internet access was able to start a chain and mine. The inclusion of big firms in the industry has created a large gap between smaller and larger firms which is increasing every day. The superior finical and technical prowess held by established firms kills all the momentum a smaller company gains in a single blow. Mining has become specialized mining, and few developers have been overtaken by thousands of professional working for tech giants.
Huobi, Bitfinex, Antpool, and Blockchain Capital are some major candidates to win the EOS block producers elections. USD 100 million has been raised by OK Blockchain Capital to lure EOS coin holders and has also promised to list projects based on EOS on the 2nd largest crypto exchange on the globe, OKEx.
Similarly, Huobi Mining Pool has collected USD 1 billion to invest in EOS projects. The firm has a strong grip on the Chinese crypto market which makes it a force not to be reckoned with. If coin holders have an interest in the vast Chinese market, then Huobi will have a higher chance of winning.
Blockchain technology was developed to minimize our reliance on banking institutions, but it has now entered the financial sector with full force. If such prominent organizations keep on developing ground for their profits the power once in the hand of anonymous users will eventually die. Again, it is possible as governments all over the globe have been trying to use the blockchain technology and if they become possible, a regular developer would not have resources to challenge their technology. Greed has been the prominent factor in the destruction of many innovations and blockchain is on the same path.