{"id":6369,"date":"2021-02-11T04:05:13","date_gmt":"2021-02-11T04:05:13","guid":{"rendered":"https:\/\/cointelegraph.com\/news\/perceived-centralization-could-kill-pos-networks-shapeshift-report"},"modified":"2021-02-11T04:05:13","modified_gmt":"2021-02-11T04:05:13","slug":"perceived-centralization-could-kill-pos-networks-shapeshift-report","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/perceived-centralization-could-kill-pos-networks-shapeshift-report\/","title":{"rendered":"Perceived centralization could kill PoS networks: ShapeShift report"},"content":{"rendered":"
<\/div>\n

A new report suggests that Cosmos, Polkadot and NEAR could fail to take off if they are perceived to have an issue with centralization \u2014 as the example of EOS demonstrates. <\/p>\n

Non-custodial crypto asset exchange ShapeShift has published a report predicting that Proof-of-Stake scalable smart contract networks Polkadot, Cosmos, and Near will be thoroughly put to the test this year.<\/p>\n

The report forecasts the networks\u2019 claims of increased scalability without sacrificing security or decentralization will soon be tested. Shapeshift notes the distribution of Polkadot\u2019s and NEAR\u2019s respective native tokens appears quite centralized as a result of \u201crelatively high insider token allocations,\u201d while Cosmos\u2019 pluralistic architecture requires each of its individual \u201czones\u201d to recruit independent validators \u2014 making it more difficult for each zone to ensure robust security.<\/p>\n

Ultimately, the document\u2019s author, Kent Barton, speculates the perceived degree of centralization of the respective platforms will likely determine which blockchain will thrive from those that will fail to gain traction, asserting:<\/p>\n

\u201cThis dynamic has already played out in EOS, where evidence of validator collusion seems to have played a role in the platform\u2019s anemic developer growth over the past year.\u201d<\/p><\/blockquote>\n

ShapeShift predicts the promise of smart contract<\/a> platform interoperability will be put to the test this year, forecasting that \u201cvalue and data will begin to flow trustlessly between different crypto ecosystems.\u201d  <\/p>\n

But the report also emphasizes it will be a challenge to design systems that conceal the complexity of blockchain interoperability<\/a>:<\/p>\n

\u201cWider adoption will likely require that the complexities of interoperability are made nearly invisible to users.\u201d<\/p><\/blockquote>\n

Noting the absence of a \u201cone-size-fits-all\u201d smart contract solution, ShapeShift predicts that decentralized exchanges and applications will adapt to the unique capabilities offered by different smart contract platforms.<\/p>\n

However, the report cautions that the platforms’ innovations will also bring new vulnerabilities as demonstrated by the myriad of flash loan exploits<\/a> suffered by DeFi protocols in late 2020.<\/p>\n

\u201cEmerging blockchain ecosystems will likely have their own version of flash loans\u2014powerful new abilities that expose users to a loss of funds,\u201d said the report.<\/p>\n

Source: COINTELEGRAPH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A new report suggests that Cosmos, Polkadot and NEAR could fail to take off if they are perceived to have an issue with centralization \u2014 as the example of EOS demonstrates. Non-custodial crypto asset exchange ShapeShift has published a report predicting that Proof-of-Stake scalable smart contract networks Polkadot, Cosmos, and Near will be thoroughly put…<\/p>\n","protected":false},"author":1,"featured_media":6370,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[553,551,552],"class_list":["post-6369","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-crypto-news","tag-interoperbility","tag-near","tag-smart-contract-platforms"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/6369"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=6369"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/6369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/6370"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=6369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=6369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=6369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}