Vitalik Buterin Speaks Out Against Centralization in the Crypto Industry

[Henrikbliss]

Centralization has been the subject of several heated discussions in the cryptocurrency ecosystem, and this time, Ethereum founder Vitalik Buterin has expressed grave concerns about the trend toward centralization of the crypto industry.

Speaking to TechCrunch columnist Jon Evans at an event in Zug last week Vitalik said: “I definitely personally hope centralized exchanges burn in hell as much as possible.”

According to him, centralized exchanges exist only because they serve as a kind of bridge that connects the world of financial currencies and the sphere of crypto assets.

Vitalik further criticized projects that pay between $10 million and $15 million only to get their tokens listed on the centralized exchanges. He also noted that many projects with tokens based on Ethereum were “not very successful and not decentralized at all.” According to him, some of them had only a few knots that were controlled by one company.

Speaking about Ethereum, Vitalik said he wants to ensure that the blockchain is as decentralized as possible. However, he noted that the ideas and proposals expressed by the community often go against his vision.

“If all this fails to be realized, then we will all have to use Coinbase,” Vitalik said, adding that it would be “not so fun.”

The blockchain pundit also expressed concern over the dominance of Chinese mining giants Bitmain In the cryptocurrency mining industry. According to him, the concentration of capacities in the mining pools controlled by the Chinese giant creates a threat of a “51% attack” on the bitcoin network.

“In 2013, many were intimidated by the fact that GHash controlled 51% of hash capacity. Now all this is happening again and people do not say much about it,” Vitalik said.

He further noted his worries about the excessive concentration of cryptocurrency mining pools in a single country, citing the recent flood in the Sichuan province of China, which erased local bitcoins-farms from the face of the earth.

Source: https://news.bitzamp.com/vitalik-buterin-speaks-out-against-centralization-of-the-crypto-industry-wants-exchanges-to-burn-in-hell/
Date Posted: July 9, 2018