Digital asset ratings unitWeiss Crypto Ratingsstudied 122 cryptocurrencies across the market using a variety of metrics.
Nothing could be further from the truth, declared Weiss.
The industrys data pipe capacity and security have improved dramatically.
And the underlying technology has evolved with new, more efficient ways to create digital assets.
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Curiously, thesecond most popular cryptocurrency by market cap, Ethereum, didnt even make the top five.
Disregarding the risks involved with investing in digital assets resulted in higher grades for pretty much every top cryptocurrency.
Okay, but where does decentralization fit in to all this?
All these factors certainly seem important but one glaring exclusion isdecentralization.
Many listed projects have less than 100 validators on their networks.
In EOS case,its 21, and NEOs web connection isas small as seven fully validating nodes.
Ethereum has almost9,000 securing its blockchain, and Bitcoin hasmore than 10,000.
Villaverde explained that decentralization can mean different things.
Security (in the adoption model) involves how resistant the ledger is to double-spends.
This makes sense, but only for those blockchains using the PoW consensus algorithm.
EOS has fewer controlling parties than 21.
There are a small number of miners who control the overwhelming majority of hashrate, however.
Its beena very slow process.
But hang on: isnt EOS more of a cloud computing service?
Thepublished results were pretty damning.
For example, some claim that a real blockchain must be PoW.
Bitcoin maximalists argue every project is a scam except for Bitcoin.
Others say Bitcoin and Ethereum are real but the rest are illegitimate.'
Overall, we have yet to see a universally accepted definition of a real blockchain.
For these reasons, we keep an open mind.
We dont claim to know what a real blockchain is, or what true decentralization means, said Villaverde.
Nor do we believe strict definitions are desirable.
Its worth pointing out thatdata shows a large chunk of that traffichas been coming from gambling dapps.
seems to be the niche crypto and smart contract platforms have found so far.
The firm did not begin in blockchain, but its part of it now, and its weighing in.
Hard Fork has its own stage atTNW2019, our tech conference in Amsterdam.Check it out.
He’s currently on the finance beat.
