Blockchain isn't as decentralized as you may assume: Defense agency report

22-Jun-2022 By: Simran Mishra

Blockchain isn't as decentralized as you may assume: Defense agency report

According to Trail of Bits, the centralization issues associated with distributed ledger technology (DLT) and blockchains like BTC and ETH may be more serious than previously anticipated.

The security company published its "Are Blockchains Decentralized?" assessment on Tuesday. The report was ordered by the Defense Advanced Research Projects Agency of the US government.

Although it appears to be primarily focused on Bitcoin, the analysis seeks to determine if blockchains like Bitcoin and Ethereum are actually decentralized.

The security company's key conclusions included the possibility for different actors to obtain excessive, centralized control over the network due to outdated Bitcoin nodes, unencrypted blockchain mining pools, and a majority of unencrypted Bitcoin network traffic passing through only a small number of ISPs.

After Solana raised worries about centralization, the study arrives at an important time.

The decentralized finance (DeFi) lending platform Solend, located in Solana, came up with a last-minute governance plan on Sunday to take control of a whale's wallet that was about to be liquidated and was putting pressure on Solend and its customers.

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