Cryptocurrency is more centralized than many advocates claim, according to report
"It's been taken for granted that the blockchain is immutable and decentralized, because the community says so," said Dan Guido, CEO of Trail of Bits, the software security research company that worked on the report. He toldthat cryptocurrency power is concentrated among people or organizations that have a large chunk of the pie. Almost like any other capitalist system, some might argue.
Trail of Bits defined"unintended centralities" as circumstances under which an entity has sway over a so-called decentralized system, which could afford them the opportunity to tamper with records of ownership. The report also notes that three ISPs handle 60 percent of all bitcoin traffic. A blockchain network could be disrupted if a communications regulator, a hacker or someone else with oversight of one of those ISPs slowed down or halted bitcoin traffic.
There are also weaknesses in the bitcoin network itself. The report found that 21 percent of nodes are running an old, vulnerable version of the core bitcoin client. Those systems could be targeted in an attempt by an attacker who's looking to take over the majority of a blockchain network, though that seems relatively unlikely given the size of the bitcoin network.
Some of these situations are theoretical, but the report highlights some of the deficiencies of blockchain tech. There have been some clear instances of centralization impacting parts of the ecosystem, however.
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