ethereum, bitcoin networks are perceived as #decentralized , but are they truly decentralised?

Top 100 address/nodes hold 39% of Ether on the Ethereum network, and 14% on Bitcoin network. Ownership on these networks is directly proportional to influence they have.

This isn’t exactly decentralised.

Decentralisation on public #blockchain networks is considered as a progressive attribute, so statements like, “Bitcoin network is more decentralised than Ethereum” are common.

The governance of these networks, even besides the two most popular ones is being done through #DAO, Decentralised autonomous networks.

A DAO is an entity without hierarchy, which is used to govern networks, they form rules and policies which are written and executed using #smartcontracts. Users participate and are incentivized through ownership/issuance of tokens.

Now even though this is not controlled by one individual, or organisation, the control is with a limited number of owners.

Then there is an issue of the technology and infrastructure on which the chain and nodes are hosted on. Apparently around 60% of the nodes on Ethereum are hosted on AWS.

Even though this infrastructure is not truly decentralized, I still believe this is better than the traditional infrastructure, where the control is with one or a few organizations which offer limited transparency.

Freedom, democracy in finance (and other spaces) is the most fundamental need that this change aims to solve.

Having said that, still a lot of work needs to be done, but I am excited for the future.

Ajay Singh Pundir

Over the last decade and half, Ajay has acquired experience across ‘Business Strategy’, ‘Sales management’, Business Development’, ‘Solution Consulting’ and ‘Research and Development’. He has been leading interactions with financial institutions, fintechs, software vendors and services organizations globally, acquiring crucial global exposure of varied financial technology markets with a focus on payments but not limited to it.

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