The Impossible Triangle of Blockchain
This article is extract from an article published by members from Tecent Blockchain Project
There is an impossible triangle for Blockchain technology, namely among cost-effectiveness, decentralization and security, only two of the three can be achieved.
If you analyze the contributors of Bitcoin’s open source codes, you will find zero Chinese as the core developer or general developer. The operation of Bitcoin has achieved decentralization while Bitcoin’s coding in centralized. When codes are complex enough, the control over Bitcoin’s coding will be in a few coders. China’s should worry about that whether it will has its representation of Bitcoin’s coding process.
Moreover, if some power from some countries joins the process of mining, which is already an industry chain, will make the presumption that “each miner has the equal chance to mine” untenable. The status is that a couple of mines is now controlling hash power of the network, which is also a sign of centralization.
Blockchain technology is the innovative result of several technologies of years of history like hash algorithm, P2P and PoW. Yet Blockchain is still in its infancy, not least in the security field. For example, Allinvain has found her 250,000 BTC stolen in 20111, the first recorded victim of major Bitcoin theft. The case that The Dao has been stolen 60 million worth token is just another indicator to the weakness of the technology itself and weakness of the current structure in which Blockchain needed to be built.
Furthermore, Bitcoin is anonymous thus it has been used extensively in illegal trade like money laundry, terrorist activity and drug deal. The Bitcoin-based online site Silk Road has just been cracked down.