What is Decentralization (in Cryptocurrencies)? || The Blockchain Trilemma

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What is Decentralization?
Is Bitcoin Decentralized?
Is my favorite crypto Decentralized?
How do you solve the Blockchain Trilemma?

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Comments

Patrick Luberus says:

Excellent video, though I disagree with your definition of centralized. You mention that centralization has to do with hierarchy, but that's not necessarily true imo. For example, while anyone can be a Bitcoin miner, if one entity had 100% of the hashrate, most people would consider Bitcoin to be centralized ("concentrated" per your video definition), even though there technically isn't multiple levels of hierarchy

Similarly, there are cryptocurrencies like Nano that have a pseudo 2-tier system, BUT anyone can become that 2nd tier at any time, AND that 2nd tier doesn't give you any special permissions: you don't earn transaction fees, you don't produce/create blocks that extend a blockchain and determine truth for all nodes, etc. Every node individually (locally) determines whether or not a transaction is valid – there is no longest/heaviest chain rule

Finally, Nano doesn't claim to solve the trilemma. It intentionally prioritizes security and decentralization over scalability. It's just that its unique design decisions (i.e. block-lattice ledger data structure + open representative voting consensus) allow it to push the thresholds of that trilemma much farther

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