There are two basic types of blockchains:
(1)Centralized Blockchains
(2)Decentralized Blockchains.
The most commonare decentralized,but all blockchains are distributed. In the centralized blockchain the distribution is between the nodes of the owner and partners/investors.The main advantage of decentralized blockchains is that it is open source and anyone can join and contribute. Currently approximately 50,000 programmers all over the world are contributing to decentralized blockchains. And they share their knowledge with each other. They are very diverse and distribution is much easier. Regarding centralized blockchains, that is not the case, because the mining is done by the owner of the blockchain and distribution is confined to a much smaller group of people. Centralized blockchains according to some critics are just an upgrade of the centralized banking system more than the progression of the blockchain,which could be considered to be partially true, but not entirely. Both systems have their good sides and their bad sides.It is a huge world, a huge market, and everyone can think for themselves.
What Is The Overall Advantage of The Centralized System?
The
processing or hash power of the network does not need to increase
because it can remain constant and the number of transactions can remain
constant. But if they wanted to increase the processing or hash power,
the number of transactions can also increase with it. So centralized
systems can increase the number of transaction far easier and faster
than any decentralized system. In the long term, this is far more
significant than most people realize.
Transaction Speed the Main Advantage of Centralized Systems
To
put this into perspective, for example, OneCoin can support 100,000
transactions per second, VISA 54,000, PayPal 450, Ethereum 25, Bitcoin
5. So if we look at global use, the decentralized systems chances of
increasing their transaction speed is very weak. Centralized systems can
increase their transaction speed in a matter of days by just increasing
their processing power. That is the main advantage of centralized
blockchain systems.
Bitcoin Fees Are Increasing With regard to
fees, Bitcoin is increasing, and others are following suit. Very few
people anticipated that. And the fees will only continue to increase. So
it is not a cheap system to use.
Exchange Monopoly Cartels Hate OneCoin
Unfortunately
when people are first introduced to OneCoin, they search the Internet:
What is Bitcoin? What is OneCoin? They go through all the hater stuff
and they catch themselves on the price. OneCoin is $25 and Bitcoin is
$8,000, and nobody asks why. Bitcoin has a monopoly. If you go to the
exchange, you must use Bitcoin to buy any other coin, and this is the
monopoly cartel (organized agreement to maintain prices at a high level
and restrict competition) created by the exchanges.
There are 4 basic steps:
1. You deposit your money on the exchange
2. You buy Bitcoin
3. You exchange Bitcoin for another Digital Currency
4. Then you withdraw those coins into your eWallet
There
are 4 fees to be paid and this is a global agreement for every
exchange. They all make a lot of money on these exchanges and they do
not intend to change that. Any Digital Currency that bypasses this
entire global exchange system is their competition and their enemy, and
they will do anything and everything to destroy this competition.
Big Advantage of Centralized System.
Regarding technical
aspects, and if we look at the long term solution, the centralized
system has a big advantage.Why? Consider this old Bitcoin commercial
from 2013, and it sends a very good message. Western Union send $50 for
$5 fee for pickup in the US. Bitcoin send any amount for only $.01 for
pickup anywhere in the world. And that was the initial advantage.
Big Disadvantage of Decentralized System
The entire
problem of the decentralized systems is, as people join the mining pool,
the processing or hash power of the network is increasing, but the
speed or number of transactions per second is staying the same. The
mining requires very expensive computer processing power and increasing
cost of electricity, so over time the cost of each transaction is
becoming more and more expensive. And what they should do is, as the
power increases, the speed should also increase, but that is not
happening. This increasing cost per transaction is due to the disparity
between the increasing power cost and static processing speed. And this
is what the normal ordinary Bitcoin enthusiast does not understand. I
have had a lot of arguments with them, but they are mostly fascinated by
technology, and not anything else. They do not care about usability,
they are not interested in the value, they just recognize the systems
that are copy and paste systems the same or similar to Bitcoin. And
everything else to them is not valid.
The main advantage is
diversity and innovation because there are now blockchain systems for
almost everything public and private. For example in a recent test,
Sweden’s land registry process was reduced from 4 months to only 5 days
using blockchain technology. That is how much faster the system works on
the blockchain.
Cons of Decentralized Blockchain Systems.
The disadvantages.
The main
disadvantage is high risk of abuse, anonymity, and the problem with
network consensus. When the network had to increase the blockchain size
for Bitcoin, to allow more transactions, their network started almost a
civil war. Now we have Bitcoin, BitcoinCash and BitcoinGold; and
everybody against everybody. The price doesn’t show it, but the system
is in turmoil.
Process of Decentralized Blockchain Systems.
They
are usually static and not susceptible to change, usually high
competition between them, and while network marketing business model can
be an advantage, it can also be a disadvantage. What is the greatest
strength of OneCoin? OneLife network marketing. What is the greatest
weakness of OneCoin? OneLife network marketing. Because we had leaders
who were not good and did bad things and they contributed to the bad
reputation, and we had good leaders who made a good reputation. But the
press and the general
public always focus on the bad things. So you
can do 20 good things and 1 bad thing, and the press always reports on
the 1 bad thing, and they will never mention the 20 good things.