Bitcoin needs centralization

Researchers at Northwestern University concluded that Bitcoin's low stability is directly related to its complete decentralization. The study points out that compromise is necessary to achieve general acceptance of Bitcoin.

Researchers suggest that there must be a middle ground between central banks and the Bitcoin ecosystem. They say the PoW protocol and its associated low transaction volumes are a barrier to mass adoption.

“If you look at the two networks, central bank and bitcoin, one is centralized and the other is not. If we want Bitcoin to scale, we need to find a trade-off, which means we need to achieve some level of centralization,” said Northwestern University strategy professor Sarit Markovich. 

Currently, there are already slightly more centralized cryptocurrency models, for example, EOS, where validators are selected by voting. 

According to information from Western media, Northwestern University employees, together with bioXroute Labs, are developing a platform that will help solve the problem of the “scalability bottleneck.” This solution should increase the block size and at the same time reduce the time required to complete a transaction. 

We don’t yet have information about exactly what this blockchain platform will look like, but according to Markovich, it “scales 100 times better than Bitcoin.” 

Despite the need for such developments, this news can be viewed from different angles. Essentially, more centralization goes against the principles of cryptocurrencies that attract people. 

Since we know little about this platform, we can only guess how much it will centralize the cryptocurrency. However, using the word “centralization” in the same sentence as “bitcoin” may not please cryptocurrency fans.

According to https://cryptovest.com