Findings of a recent research report suggest that only 7,500 wallets hold almost 80% of the total circulation of the Ethereum in the market. These revelations have raised several eyebrows, and among others, one reaction has come from the house of Weiss Ratings. According to the firm, this acute centralization of the currency could pose a challenge for Ethereum as it is gearing to adopt a new consensus algorithm called Proof-of-Stake.
Of late, Delphi Digital published a report titled, “Entering the Ethereum: Long-Term Value Potential and Analysis,” and according to the findings of the report, a handful of Ethereum wallets controls the major share of its total market circulation. The report went on to question the Ethereum on its effort to become a sustainable decentralized currency when such large domination was centralized with a handful of wallets. Weiss Ratings, however, favored Ethereum on the decentralization aspect. Comparing Ethereum to BNB whose two-third supply is controlled by top 5 accounts, the agency said that Ethereum is undoubtedly the most decentralized ledger as per their knowledge and current market situation.
Ethereum: Decentralized or Not
Despite the findings of the report, there is enough support for the fact that Ethereum can be easily counted among one of the most decentralized cryptocurrencies in the industry. In fact, this argument is consistently used by the co-founder of Ethereum Vitalik Buterin against the high transactions per second claims made by a chief executive officer of Tron, Justin Sun. Sun has always been boastful about 10,000 transactions per second that one can achieve on Tron though Buterin claims that such high rate of transactions per second can be achieved only in case of a centralized structure which involves only a handful of nods in a given network.
Just so you know, Weiss Ratings is one of the most trusted names in the financial assessment industry. The company is based in the US and has been involved in the assessment business of cryptocurrency and various other financial institutions. One of the highlights of the company’s assessment procedure is its objectivity, and its reports are widely used by a number of stakeholders including the ones who want to make investment decisions. Even the financial institutions and cryptocurrencies refer to the reports of Weiss Ratings for making the improvements in their operating mechanisms and functional procedures.
Ethereum expected 2019 hard fork update to bring zing back and although the actual result is not as per expectations, there is a solace that the currency witnessed at least no major price dip. What the future holds for Ethereum is not yet clear especially in the backdrop of Bitcoin gaining momentum at a faster pace than Ethereum. Still, all is not doom and gloom as the current price of Ethereum today is higher than its price at the start of the year.