# kaal:claim:3227967-032

**Claim.** Existing blockchains and DAOs still lack genuine decentralization, and there are currently no true DAOs: Bitcoin's proof of work protocol has produced mining pools because of economies of scale and unbalanced reward structures.

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

**Holds when.**

- proof of work blockchains as of 2018

**Source quote.**

> In our discussion, the following weaknesses were highlighted. There is still a lack of decentralization (there are currently no "true" DAOs). For instance, Bitcoin's proof of work protocol has led to "mining pools" because of economies of scale and unbalanced reward structures.

**From.** Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, *Legal Education in a Digital Age Why 'Coding for Lawyers' Matters* (2018), IX. Coding for Lawyers, page 30

**Cite as.** Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Legal Education in a Digital Age Why 'Coding for Lawyers' Matters (2018). SSRN: https://ssrn.com/abstract=3227967

**Verify.** sha256 of source PDF `f6e13b956f864ab32ec3305d095a35a127770327d75b3688f785cefc437d369f` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Fenwick%20et%20al.%20-%202018%20-%20Legal%20Education%20in%20a%20Digital%20Age%20Why%20%27Coding%20for%20Lawyers%27%20Matters.pdf

**Failure mode.** Recentralization of proof of work networks  (family: recentralization-drift)

**Topics.** blockchain, dao, decentralization, consensus-and-security

**Keywords.** blockchain, daos, decentralization, proof-of-work, mining-pools

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3227933-019
- restated_by: https://wulfkaal.github.io/claims/3808873-008
- extended_by: https://wulfkaal.github.io/claims/3782193-027
- restated_by: https://wulfkaal.github.io/claims/3782198-024

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