As crypto hits the mainstream, more businesses and companies are joining the game. We've seen innovations from NFTs to security tokens, and stablecoins. Most of the coins being traded on the market have smart contract functionalities, making them multi-purpose platforms for real world use. While all of this sounds nice, there's been an increasing rate of centralized exchange dominance over the past years. Not only that, but alternative cryptocurrencies (altcoins) have been prioritizing convenience on top of decentralization in order to provide people with lower fees and blazing-fast transaction confirmation times.
Most recently, Lightning Labs announced the creation of a new stablecoin that will operate in its "Taro" platform. If companies start to embrace stablecoins on top of traditional cryptocurrencies, then the whole industry will become heavily centralized. This should be a cause of concern, as a full government crackdown (or ban) could mark the end of crypto's prominence in the mainstream world.
Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.
Most recently, Lightning Labs announced the creation of a new stablecoin that will operate in its "Taro" platform. If companies start to embrace stablecoins on top of traditional cryptocurrencies, then the whole industry will become heavily centralized. This should be a cause of concern, as a full government crackdown (or ban) could mark the end of crypto's prominence in the mainstream world.
Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.
Yes, I believe that centralized stablecoins are not needed by the crypto industry.
The basis of the crypto industry is the first cryptocurrency (Bitcoin). All other alternative cryptocurrencies are essentially experimental laboratories for testing new cryptographic and financial technologies. As testing progresses, the best of these technologies are incorporated into the Bitcoin code.
Previously, on cryptocurrency exchanges, altcoins were traded exclusively in tandem with bitcoins.
However, later stablecoins appeared (in particular, tether, usdt). In my opinion, this is a step backwards.
Cryptocurrency is an alternative to the modern financial system. Bitcoin is a replacement for the US dollar.
Most stablecoins are centralized. In addition, they psychologically prepare people for the adoption of Central Bank Digital Currencies (CBDCs).
Blockchain is a wonderful creation and has a promising future if innovation continues in this direction. in my opinion Crypto needs decentralization, otherwise it will soon become a tool of a large conglomerate, and then not much different from ordinary fiat currencies or other commodities. Several governments have started paying attention to crypto and are now talking about tightening regulations.