- This topic has 1 reply, 1 voice, and was last updated 1 week, 6 days ago by bob-loblaw-esq.
- Tuesday, November 22nd, 2022 at 18:03 #408818FreshDopeBoyParticipant
Serious question is cardano decentralize enough to not black list any wallet addresses in the future or now?Tuesday, November 22nd, 2022 at 18:03 #408819bob-loblaw-esq
I would argue from a sociological perspective, we have some things going for us outside the code that Eth and others don’t. Largely, that is based on the diversity of our stake pools and the ability for anyone really to set up a pool and the fact that our staking process is non-custodial.
So let’s play it out with eth, since that’s our big POS competitor and they just switched from POW. When they switched, they required at least 32 eth to create a stake pool (no such req exists on ada). This means you have a system where it takes at least 50k to start a stake pool and you’ll have fewer operators and less competition for rewards. It also means that SPOs are going to be protective of their investment and much more likely to need to work with regulators. Hence the shut down and censorship we are seeing on the Eth chain.
But with ada, there are literally thousands of pools and pools compete for stakers. If someone like Coinbase decided tomorrow to start censoring the chain and transactions, I wonder how many would pull out of Coinbase and stake in their own wallet, or how many would stake elsewhere specifically because of this. So our system has a built in mechanism to ensure the community is much more involved through capitalistic processes.
There is also the fact that ada has a lot more on chain features that require holders to hold ada themselves. So let’s say Coinbase owns 100 million ada worth roughly 33 million usd. When they stake it, their rewards are all going to them (minus the small apr they offer others). But what about ICOs or staking to get governance tokens? Coinbase can do this too and just take a larger stake in these systems, but if we want those rewards, we have to hold ourselves. So, we have more incentive than just ada stake rewards.
It would be hard to see the large community first allowing censorship since our governance is moving towards dex through voting. But even still, the hardware reqs of censorship seem largely in our rear view mirror because it would take a lot of influence now to gain enough control of the system to push such things. But, if given a choice between being pushed out of major markets (USA, China, India, EU) or voting to have some restrictions could work I imagine. But I’m not so up on the dex models. I am however good at understanding process based arguments.
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