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Centralized exchanges are completely unable to exist in the original vision of Satoshi. It's literally in the 2nd sentence of the original white paper: "...but
by jc_811 4y ago
Centralized exchanges are completely unable to exist in the original vision of Satoshi. It's literally in the 2nd sentence of the original white paper:
"...but the main
benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network"
Using a centralized exchange ruins the peer-to-peer aspect and centralizes the transactions. Unless I'm missing something?
- hackinthebochs 4y agoThat line refers to the mechanism to prevent double spending. If the network needed a centralized controller to assign an ordering to transactions and ensure consistency, that would run afoul of Satoshi's vision. But centralized exchanges are merely users of the base network just like an individual broadcasting transactions themselves. They depend on network consensus just like everyone else.