Wednesday, May 22, 2024

Why isn’t decentralisation Web3’s ultimate goal?

Web 3 infrastructure requires decentralization if it wants to succeed. Users need freedom from the restrictions of web 2. The change from the current web ecosystem to Web 3 is inevitable. As more people demand decentralization, analysts are raising many important questions about the present blockchain ecosystem and its decentralization promise.

Vitalik Buterin confessed that many of these problems are caused by limited funding allocated to decentralization projects. It is easy to build current centralized systems.

Jack Dorsey had recently commented in a tweet that current networks are owned by venture capitalists. According to him, web 3 is currently owned by VCs and LPs. It remains mainly a centralized entity, according to him.

These comments make it obvious that the status quo does not meet the goals of blockchain and decentralization. The question remains who will own the Internet in the future?

Even before they had pointed out how web 3 has become centralized, many people have questioned if the blockchain ecosystem is really decentralized as it claims. For example, many layer-1 legacy chains claim to be decentralized but many recent events have shown they are not really decentralized.

Everyone remembers Infura problem of ethereum in 2020 when the networks suffered several outages. Those problems led to a hard fork caused by unknown behavior of its core developer team.

Solana has seen consistent and ongoing outages. AWS outage recently brought down dYdX. There are many such incidents that raise the uncomfortable question: Are current blockchain projects really decentralized, or they remain under the control of a few people?

Only a truly decentralized network can meet the goals of blockchain.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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