# kaal:claim:3227933-019

**Claim.** 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.

**Type.** failure  **Support.** argued

**Holds when.**

- proof of work validation mechanisms

**Source quote.**

> 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?, page 13

**Cite as.** Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Why 'Blockchain' Will Disrupt Corporate Organizations (2018). SSRN: https://ssrn.com/abstract=3227933

**Verify.** sha256 of source PDF `a9e9660c4dc25a2202f1da4e762f5885256e05f68c53ca51942f5833a7a4c108` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Fenwick%20et%20al.%20-%202018%20-%20Why%20%27Blockchain%27%20Will%20Disrupt%20Corporate%20Organizations.pdf

**Failure mode.** Mining pool recentralization  (family: recentralization-drift)

**Topics.** consensus-and-security, decentralization, economics

**Keywords.** mining-pools, proof-of-work, recentralization, economies-of-scale

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/3227967-032
- restated_by: https://wulfkaal.github.io/claims/3808873-008
- restated_by: https://wulfkaal.github.io/claims/3782198-024

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.