Blockchains are famous for being decentralized tokens and entities on the web. Here, cryptocurrency and non-fungible tokens (NFTs) also come into the setup that it is not controlled by a single entity. However, a report by Defense Advanced Research Projects Agency DARPA says that it is prone to centralization, something that will change its entire operations.
Blockchains Are Centralized Now, But it is Vulnerable, Says DARPA
According to a report by DARPA in a paper entitled "Are Blockchains Decentralized?" the agency focuses on questioning the status quo of blockchain names and entities present now. It is currently decentralized, but there is a lingering question regarding its capabilities to stay that way, especially as its unstable present events challenge it.
There is a vulnerability that blockchains are facing, and it is to transition as a centralized industry in the coming future, especially as it observes a volatile presence in the market. According to Gizmodo, DARPA's report with Trail of Bits, there are several indications regarding blockchains with certain centralized qualities.
Centralized Blockchain, Is It Bad for the Public Traders?
There are fears that the decentralized platform will transition into a centralized entity, and it is something that traders do not want to see in the future. A centralized blockchain will put the power into a single entity, and there will be massive regulations. It would get controlled and avoid its instability in the market, but it would have specific implications for traders and the public's use of it.
Blockchains and Cryptocurrency Now
People got into the cryptocurrency and blockchain train because it is an entity that is available for everyone, and it is not controlled by a single or massive entity with massive disputes on its distribution. Digital blockchains in the decentralized setup mean that there are many that control it, and without this, regulation is minimal.
There was a previous drop in the valuation of many cryptocurrencies in the market, and the top cryptocurrencies available now have decreased their valuation for almost a month. However, El Salvador's President, Nayib Bukele, is still hopeful for the coin, saying that it would continue to hold on to its assets and be patient for its subsequent rise.
The decentralized industry now is thriving, and it touched the mass audience for its existence, having many fans and believers in the future of the internet and currencies.
Now, the report from DARPA is challenging the very grounds that made cryptocurrencies and blockchains famous, especially during this time when it is at their lowest. There are many dangers in the blockchain industry, and it is vulnerable now, especially in its current state, and it only means that current owners and creators need to be careful to avoid a centralized crypto future.
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Written by Isaiah Richard
