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The Bigger the Crypto Network Gets, the Harder Decentralization Becomes

The Bigger the Crypto Network Gets, the Harder Decentralization Becomes

Photo: DeFi Planet

Crypto’s biggest economic paradox is that growth can make decentralization harder to maintain. A blockchain may begin with thousands of independent participants, but as its economic value increases, the incentives to professionalize infrastructure also increase. Mining operations buy more efficient machines, staking providers aggregate capital, developers specialize and infrastructure providers build larger data centres. The result is an uncomfortable talking point for blockchain decentralization because of the question of whether becoming more economically efficient will eventually make a network more centralized. The answer depends on the architecture, but the economic pressure is real.

Source: DeFi Planet

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