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> So, in a way, a decentralised system is being built on top of a centralised system. Is this not still fundamentally a centralized system?
by g4zj 5y ago
> So, in a way, a decentralised system is being built on top of a centralised system.
Is this not still fundamentally a centralized system?
- edent 5y agoYes. But cryptocurrencies are decentralised, and have coalesced around a few centralised entities. I imagine it won't be long before Coinbase, for example, will warn you against transferring to wallets which aren't held by one of the big providers.
- magicjosh 5y agoWhat do you think about Uniswap and other automated decentralized exchanges? These automated exchanges seem to be growing rapidly. At one point last year Uniswap had 77% of Coinbase's trading volume: https://tokenist.com/with-33x-fewer-employees-uniswap-has-77-of-coinbases-trading-volume/ https://tokenist.com/with-33x-fewer-employees-uniswap-has-77...
- g4zj 5y ago> I imagine it won't be long before Coinbase, for example, will warn you against transferring to wallets which aren't held by one of the big providers. Perhaps, but I'm not sure if that answers my question. Cryptocurrency networks are decentralized on their own, but I'd say the way we generally interact with them is not. It sounds like we agree on this point. However, whether a decentralized system is accessed through a centralized layer or vice verse, the result is a service that is not fully decentralized. If any entity, such as a bank, third-party banking service provider, cryptocurrency exchange, etc., is involved at any point, that entity effectively has some control over what happens on the associated decentralized system. This results in an at least _partially_ centralized system.
- emteycz 5y agoMy computer warns me before executing an unsigned program but that doesn't mean I can't do it or that it's not useful.
- lottin 5y agoNo, the financial sector is not a centralised system. There are multiple providers of financial services that compete in the market for customers. So it's fundamentally decentralised.
- g4zj 5y agoGiven that there are multiple providers of cryptocurrency network access services which compete in the market for consumers, do you also feel that cryptocurrency exchanges make up a fundamentally decentralized system?
- lottin 5y agoThe provision of cryptocurrency exchange services is also decentralised, yes.
- lowkey 5y agoExplain how banking is decentralized while also explaining the role of central banks, as well as the Bank of International Settlements. Hint: Traditional Banking is centralized.
- lottin 5y agoI have already explained how banking is decentralised. What part did you not understand or agree with?
- thebean11 5y agoAll USD flow from a single institution, the central bank. Other banks can create debt, but only with permission (the initial money supply) from the fed. You'd have to really squint to consider that decentralized.
- WastingMyTime89 5y agoI fail to see how the monopoly of the central bank on money creation affects in anyway the centralised or decentralised nature of private banking. It’s like arguing construction is a fundamentally centralised business in your local area because every builders buy their bricks from the same factory. It doesn’t make much sense.