Most current blockchain applications lack complete decentralization: proof of work style validation has produced mining pools because of economies of scale and unbalanced reward structures.
Source quote, verbatim
For instance, the traditional mechanism for validating and verifying a new block of transactions – e.g., Bitcoin's proof of work protocol - has led to "mining pools" as a result of economies of scale and unbalanced reward structures.
From
Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Why 'Blockchain' Will Disrupt Corporate Organizations (2018), 5. All Just Hype?, p. 13 https://ssrn.com/abstract=3227933 · source PDF
Cite as
Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Why 'Blockchain' Will Disrupt Corporate Organizations (2018). SSRN: https://ssrn.com/abstract=3227933
Holds when
proof of work validation mechanisms
Classification
failuresupport: arguedfailure: Mining pool recentralizationfamily: recentralization-driftconsensus-and-securitydecentralizationeconomics
Related claims
extended_bykaal:claim:3227967-032 Existing blockchains and DAOs still lack genuine decentralization, and there are currently no true DAOs: Bitco...
restated_bykaal:claim:3808873-008 Proof of Work block rewards structurally reintroduce centralization: the economic nature of mining rewards inc...
restated_bykaal:claim:3782198-024 Bitcoin proved that a decentralized peer to peer network can manage valuable assets without a central authorit...
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