The industry’s deliberate misdefinition of decentralization led to the poor performance and competitive disadvantage of Bitcoin Cash.
u/michaelAischmann said " I agree that BTC is not the peer to peer cash Satoshi outlined 16 years ago. If you are looking for the product in today's crypto landscape, there are far more options than 'just' BCH".
While I agree with this good guy on that, I think it doesn't explain the deeper reasons behind it.
BCH is the victim of the industry’s deliberate misdefinition of decentralization in the past few years.
I will elaborate on that.
I may be wrong. Thank you for your time in advance.
When people want to save on transfer fees, they have so many options that even you as a BCH believer won't choose BCH network. That's the reality, but my mates, why? Why is the selling point of Bitcoin Cash so unremarkable?
*Because most of them are centralized blockchains: private blockchains or consortium blockchains. *
The reason that Satoshi designed Bitcoin this way (POW 10 minutes block and so on) was that it's the optimal way for a decentralized blockchain. That is, a balance between decentralization and efficiency. Centralized blockchains certainly can have better efficiency, but, that is at the cost of decentralization.
The selling point of Bitcoin Cash is "the combination of low transfer fee and decentralization", *instead of *"low transfer fee".
I vaguely remember that in 2013 such blockchains (XRP) were not seen as real Cryptocurrencies to some extent. Back then, It was common sense that it was centralized. But in past years, they have been gradually seen by most users/investors as not only real Cryptocurrencies, but also decentralized ones.
US House even passed FIT21 bill with definitions claiming most blockchains are decentralized.
How can consortium blockchain be decentralized? How can Telegram coin be decentralized? How can VC coins be decentralized? How can L2s be decentralized? My Almighty God!
If you dare to say they are centralized, you will be seen by them as anti-Crypto. If you even claim Coinbase's private Base blockchain is decentralized, they will praise you for being pro-crypto.
This broader environment leads people to believe there are much more options than "just" BCH. After all, there are so many nearly zero transfer fee blockchains and L2s L3s. Lighning network. Wrongly forcing the centralized blockchains to be defined as decentralized leads to the selling point become Indistinguishable. The misdefinition of decentralization led to the unfair competitive disadvantage of decentralized blockchains, especially Bitcoin Cash.
Those VC coins are glad to see that misdefinition of decentralization, because they benefit from it;
The Bitcoin community are glad to see that misdefition of decentralization, because Blockstream boss has a belief in l2s.
In the foreseeable future, this misdefinition won't change. But, if we look on the bright side, in the distant future, it's unavoidable there is a decentralized blockchain (pow 10 minutes block) with a transfer fee of less than one penny that is being used by billions of people every day. It may not be Bitcoin Cash, but there will be one, maybe in 200 years. Bitcoin Cash is currently the closest chain to it.
[link] [comments]