thanks for your infos and opinions in this thread. I think that is very valuable!
@ drucks: thank you for your posting with embedded youtube video. Is the SPO of this video also in this thread?
Over the years, I have followed many cryptoprojects and on some of them I have been running (master-)nodes till today.
However, what I asked myself when looking at all dPoS coins so far or other coins who rely on delegation algorithms: Is this real decentralization?
There are coins out there (and I don’t want to name any of these coins) which get their blocks produced by less than 50 nodes worldwide! When looking at these nodes you can see that 10% of these block-producing-nodes have more power than the remaining block-producing-nodes. You can see an even more disbalanced situation when looking at our number #1 PoW crypto-coin where basically all the work is done by not more than 5 companies!
It is absolutely clear to me that in our society there will be always some sort of hierarchic orders.
However, it is important that a coin like ADA who does marketing about “decentralization” also sticks to this promise!
To sum it up what I noticed when looking at all crypto projects so far:
- “decentralized” PoS nodes are running in “centralized” data centers. This happens when all node operators host their nodes at AWS, Microsoft, Google, etc…
- as mentioned above: only very few nodes have voting power or the power to produce blocks
- setting up nodes is too complicated (I know there are reasons why this installation process shouldn’t be too easy; you need to have professional administrators which possess a fundamental administration knowledge to run these nodes)
- communities tend to not share knowledge about setting up nodes because they don’t want to have competitors
When looking at item 4): Luckily, here in the cardano community this is totally different than at other cryptocoins: The community is very helpful and also the documentations are quite good so far!
This leads to cardano having a real chance to survice in the cryptoworld! Cardano is widely accepted and has a solid layer of confidence among all participants.
However, I know about many SPOs who quit running their nodes or who didn’t accomplish in finishing their node setup. As mentioned in this thread, many young nodes are forced to leave the ada-market because they don’t mint any blocks!
It is comparable to our situation on our real-life-markets: 80% of all newly founded companies become insolvent within their first 5 years due to missing marketing strategies and failing in business management.
This leads to our current real-life-market situation, too - comparable with cardano: there are only a few companies left who control nearly all of the market. Many of the newly created stake pools have no chance to compete. However, this is no decentralization! And when there is no decentralization, we have to ask ourselves if we gain the desired trustness by the people to invest and rely on cardano? To be honest, if a dummy user has to choose between banking a currency controlled by a state or a number of states and a cryptocurrency controlled by a single private company which is unknown to the dummy user and who holds 50% of all the currency: in which would he most likely invest?
I would like to do another comparison:
Think of small companies who do a lot of handcrafting, who serve highly qualified food, who create personalized items or who look at being most sustainable. Most of the time, these companies who focus at pure quality have difficulties in surving: They have to increase their prices to be competitive. We all know that not everyone is able to buy the high quality things. Sometimes we have to draw compromises between quality and price.
I know one collegue who creates handcrafted wood-kajaks with highest quality. Each kajak is a unique, personalized item with an insane amount of working hours spent in there. He has to sell these kajaks at an insane high price - but - neverthless, when I ask him if this is profitable, he just smiles, shakes his head and tells: it’s a hobby!
The curious thing when comparing this with ADA: In cardano network you can have all different layers of quality without paying anything. You just delegate your ADA! So why are most of the votes delegated to only a few pools?
And that’s the most important point: It is exactly the main big bad thing we have on our planet earth: when only a few big-company-nodes are allowed to produce blocks and many small stake pools have to quit the market because they can’t compete - allthough they might be have a even higher quality, more redundancy, more backups, more handcrafted servers (not hosted in big data centers) than the big stake pools!
Looking at item 3) and 4) of my list above: I am still here if someone needs help in setting up his own node. Cardano will be only different than all the other dPoS coins when there is real decentralization and when we can tell “yes, this currency is controlled by us! and not by a/few private company/ies!”