I agree with your statement "decentralized crypto currency (including Bitcoin) is a delusion".

This is a quote by Dan Larimer that has stuck with me for a while and was part of the reason I got into supporting alternatives to PoW:

This is part of the main ideology behind dPoS... all consensus algorithms eventually tend towards centralization, so it provides for a method for shareholders to decide who produces blocks (ideally whoever best benefits stakeholders.) A few articles you might find interesting:

http://bytemaster.github.io/article/2015/01/12/Decentralization-Scalability-and-Fault-Tolerance-of-Bitcoin/
https://web.archive.org/web/20150428162046/http://bytemaster.bitshares.org/bitshares/2015/01/04/Delegated-Proof-of-Stake-vs-Proof-of-Work/

This is a similar issue along the same lines involving cryptocurrency trading, the centralization of liquidity/volume, where trading eventually centralizes around the exchange(s) with the most volume and liquidity: http://bytemaster.github.io/article/2015/01/05/The-Future-of-Crypto-Currency-Exchanges/

I think Bytemaster has some of the most sound ideological blog posts on consensus algorithms, and is one of the reasons why I originally got into Bitshares.. sorry to plug Bitshares but I feel the things I brought up are applicable to the conversation.


I feel like there may be some way to do this using oracles and recurring auctions: https://bitcointalk.org/index.php?topic=675333.0