What Kind of Decentralization That We Need?
Jiang Zhuoer retweeted an article titled:What kind of decentralization that we want? with his opinions. Written by Ying Yuan, the article claims that mining industry has no barrier other than funds while the coding side is under strict control by a few therefore mining is an open market, whose decentralization is what users desire. Below are some excerpts and Jiang’s comment.
Ying Yuan elaborate the ideal decentralization in the bitcoin ecosystem.
The Bitcoin mining industry has almost no such barrier. Bitmain is the biggest producer of miners in the world. But the technical barrier of this industry is not high. On the other hand, although several major mining pools account for the bulk of the entire hashrate. A new pool can immediately take over as long as miners find it more profitable to mine on the new pool.
Bitcoin as a product of various mining sites are all the same. Therefore, from product to sales, the bitcoin mining business enjoy unprecedented full competition. If mining whales intends to harm the interest of users, then other miners will rise to compete with him. Users will choose fork that is in compliance with his own interest. Such competition has prohibited whales from hurting the interest of users. Any entities or individuals in the mining industry has nothing special. Potential pest will be driven away by profit-seeking users.
“We don’t care if the decentralization looks like the way that insiders and outsiders want it to be. Bitcoin doesn’t need illusory stuff like conviction. As long as all participants stick to interest, the entire system may evolve. Bitcoin is the cutting-edge technology that the rightist to realize their ideals and not for the Leftist to talk about utopia.”
Can we trust that the current model of decentralization is capable of protecting the interest of bitcoin users?
The answer is yes. Because the foundation of the system-the substitutability of miner- does not change fundamentally.
“All centralized systems in this world have one feature in common, which is a special barrier that is irrelevant to power in the industry once monopoly is formed.”
He listed the competition between WeChat and Alipay
“Take WeChat for example, the technology and funds needed for WeChat to grow can be copied and Alipay did try to take its position in terms of social tools. But Alipay cannot succeed. On the payment tool side, WeChat cannot replace Alipay either.”
The various types of barriers formed after the centralized monopoly prevent newcomers from participating in the competition. With this barrier, the centralized system becomes irreplaceable. Therefore, they can exploit users to a certain extent for their own interest.
Jiang Zhuoer, known for his firm support of Bitcoin Cash, retweeted the post and said:
“Mining is not centralized. Anyone can purchase miners and direct hashrate to whoever he support. Mining whales couldn’t stop people from entering the mining network. So far there are 6 producers of miners in the market. As long as one is willing to invest, he can own hashrate and the right to vote.”
Jiang Zhuoer never forget to slash bitcoin core dev team.
Coding (of Bitcoin Core) is centralized. Without the consent of “coding whale”, one cannot acquire a BIP number, let alone further discussion and implementation.
He also described BCH as the free market of Austrian economics and Bitcoin Core as the governmental intervention of Keynes.
At the end, the article also warns the potential risk of mining centralization.
“The decentralization that we want to achieve is a free mechanism without any barriers except funds.”
“If mining whales wants to come up with additional barriers, such as modifying algorithm or shortening block interval, resulting in only one or two giants in the market. Then we must boycott such conduct.”
What kind of decentralization that you favor?