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A Summary of

Decentralization in bitcoin and ethereum

by
Adem Efe Gencer, Soumya Basu, Ittay Eyal, Robbert van Renesse, Emin Gün Sirer
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The State of Cryptocurrency Networks: Bitcoin and Ethereum

Contrary to popular belief, cryptocurrencies, particularly Bitcoin and Ethereum, are constantly being updated and improved. Thus, much like a company does in an annual report or the USA does in its State of the Union, it’s useful to summarize the changes that have occurred to cryptocurrencies as of late. - Bitcoin underutilizes its network. Compared to Ethereum, Bitcoin’s higher bandwidth makes the coin less decentralized. - Ethereum is more decentralized than Bitcoin. In fact, Bitcoin has twice the rate of nodes found in data centers when compared to Ethereum. - Ethereum nodes are typically found in more autonomous and decentralized environments. - Despite this, neither Ethereum nor Bitcoin are all that decentralized. - A small number of top miners in the cryptocurrencies own a significant proportion of the total number of transactions. - Ethereum’s system wastes energy. The system is not always finding precisely what is being sought after, making it more energy intensive. - Ethereum is more fair to smaller miners, providing them with a chance to grow significantly. In all, despite the changes these coins have undergone, they are still decentralized and are continuing to improve resilience against unfair mining practices. 

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