Decentralization challenges in the crypto world

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3 months ago

Blockchain is the future technology and it is evolving day by day. I say it is the technology for the future because we still have a long way to go. There are so many challenges right now and very less developers can use the blockchain and cryptocurrency concept for a real-world use case. There are many advantages this technology is giving us and decentralization is one of the biggest things that blockchain and cryptocurrencies are trying to give us. Even here things are tricky because there are some challenges in the concept of decentralization as well. That is what we are going to see in this article.

Multiple ideas from multiple people

When there is no single centralized authority to govern, there is a high possibility that multiple people can come up with multiple ideas. In a decentralized environment, most of the ideas go through the stakeholders, and people with the highest stake will influence the listed ideas. There is a high chance that people might even choose a bad idea because they are influenced by the project owner or a group of people.

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People might see this in a positive way where anyone can share their ideas on a decentralized platform and only the best idea would get the votes and would be selected. It can sound very nice but the practical challenges might be different and people will know only when they get involved. Some people will start making an effort to make others feel that they are important. That's also something that would happen.

Challenges in organizing things

When people are working on an open-source code, there should be a few people who would approve the pull requests. Sometimes we will not be able to expect perfection from everyone. One person might be organized and another may not be organized. I have seen instances where people think that they should just be moving forward and not worry about perfection or having standards. But later when they are stuck or when the progress is not good, they will not hesitate to scrap everything and start from scratch once again.

No ownership and the blockchain can vanish

This is a possibility because what if everyone decides to stop running nodes? The blockchain would halt and the investors might start having problems as their assets would get locked inside the chain and the chain would not move anymore. This is the most extreme worst-case scenario. I wanted to give this thought because currently, the government has started giving some problems to people living in some countries. They don't like the fact that cryptocurrencies are getting printed just like that and people can make a lot of money without the government's visibility. In an extreme scenario, the blockchain might completely vanish when nobody runs a node.

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No centralized contact to complain

Usually, people need a centralized contact to complain or raise their concerns. For example, if we have to list a coin on a centralized exchange, they would ask for a company or a point of contact to keep the listing intact. Some of the coins that have a heavy market cap, don't expect this because it is very popular to operate a node for the top coins and they know how to handle it. For the newly emerging decentralized chains, people will have to be dependent only on dex and not cex.

Nobody can claim authorship and nobody can be sued

In the crypto world, nobody can say that a particular chain belongs to them. Unless and until it is a company having full control over a particular chain and just having a few features alone available for the public and allowing the public to operate node it can operate in a centralized manner. Otherwise, if it is a decentralized chain, nobody can claim authorship, and when it comes to legal aspects even the governments or the legal bodies cannot sue anyone because there will be nobody whom we can call an owner. Everyone would just be a consumer of this.


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