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Bitcoin Less Decentralized Than Ethereum: Seven Points by Community
Vladislav Sopov, a blockchain analyst and writer with a scientific background, has shared his insights on the decentralization of bitcoin (BTC) and ethereum (ETH). In a recent discussion, he highlighted seven points that demonstrate how Ethereum is less decentralized than Bitcoin.
Firstly, Sassano emphasized that the fact that ETH’s gas price can be manipulated by its users shows a level of centralization. He explained that this feature allows for faster transactions at a higher cost, but it also implies that users have an incentive to influence the network. This, in turn, raises concerns about the potential for manipulation and control.
Secondly, he mentioned that Ethereum’s validation process is more centralized than Bitcoin’s due to its proof-of-stake (PoS) consensus algorithm. Sassano argued that this design choice has led to a more controlled environment, as the validators are chosen based on their stakes rather than computational power. This shift towards PoS makes it easier for large holders of Ether to control the network.
Thirdly, Ethereum’s “tail issuance” model is designed to incentivize long-term investors and discourage short-term speculation. Sassano believes this approach promotes a healthier tokenomics and reduces the likelihood of price manipulation by whales.
In contrast, he noted that Bitcoin’s supply schedule is more aggressive, with an annual inflation rate that is much higher than Ethereum’s. This rapid increase in supply makes it difficult for any single entity to manipulate the network through sheer wealth.
Fourthly, Sassano pointed out that the majority of ETH transactions are concentrated on a few exchanges and liquidity pools, which creates a vulnerability to manipulation and control by these entities. On the other hand, Bitcoin’s decentralized architecture avoids this issue as there is no central hub for transactions.
Fifthly, he highlighted the Ethereum network’s fragmented social layer, which allows users to create their own communities. This feature makes it more difficult for any single entity or group to impose its will on the entire network.
Sixthly, Sassano mentioned that Ethereum has a stronger and more active community, with over 170 developers supporting the project. He believes that this diverse support structure contributes to a healthier ecosystem compared to Bitcoin’s centralized environment.
Lastly, he concluded by emphasizing the importance of considering tokenomics in the evaluation of decentralization. In his opinion, this perspective helps reveal subtle differences between Ethereum (ETH) and other cryptocurrencies like Bitcoin (BTC).
Sassano’s remarks have sparked controversy within the cryptocurrency community, with many users debating the validity of his claims.
Source: u.today
