Altcoin Magazine: Anchor’s CEO Daniel Popa on Decentralization in the Crypto World and the Effects of Hacks
Altcoin Magazine, the go-to publication for many that focuses on the news and the latest developments in the world of blockchain and cryptocurrency, recently published an insightful article written by Daniel Popa, the founder and CEO of Anchor, which aims to introduce a GDP-pegged stablecoin. There, Daniel Popa talks about the recent May hack of Binance and the repercussions it carried with it.
As Popa says, crypto is still in its infancy. Thus, there’s a huge level of distrust when it comes to using cryptocurrencies for all sorts of purposes. That trust partially lies in the technology users have to learn more about, and in the level of decentralization it offers.
The whole point of decentralization is that no one is able to take control of a crypto network. However, as time has shown, although the Bitcoin blockchain hasn’t been attacked yet, multiple exchanges have. Just recently, Binance suffered through an ordeal in which hackers stole $40 million worth of bitcoin.
The fact that the CEO of Binance, Zhao Changpeng, even suggested a re-org approach is a more concerning matter, though. That suggestion sheds some light on the idea that even though Bitcoin seems decentralized, some players might have more influence than others.
In the ideal world, each miner would have an equal level of power within the network. Now, however, there’s a so-called Bitcoin Oligarchy. Only a few have enough money to cover the high costs of electricity required for mining.
In the end, hacks can damage the crypto world, just like a security breach of an exchange would cause chaos in the finance world. So, something has to change.
Possible solution
Popa emphasizes the importance of securing the exchanges further and making sure there’s a good level of decentralization. Additionally, he suggests using renewable sources of energy and different cryptocurrencies for different purposes, while not underestimating the importance of a single coin that offers long-term price stability.
To learn more about what hacks can do to the crypto ecosystem, read the whole article here.
Title photo Chris Liverani, Unsplash.
