Is ETH really decentralized?

ETHEREUM
#1

Disclaimer: I like the Ethereum platform. Just trying to understand its governance and more.

Fabian Schär is a professor for distributed ledger technologies and fintech at the University of Basel questions whether Defi on Ethereum network is really decentralized.

“Moreover, the term “decentralized” is deceptive in some cases. Many protocols and applications use external data sources and special admin keys to manage the system, conduct smart contract upgrades, or even perform emergency shutdowns. While this does not necessarily constitute a problem, users should be aware that, in many cases, there is much trust involved.”

Matthew Crowder of Trader University argues that Ethereum is dependent on AWS centralized servers

Sources: https://files.stlouisfed.org/files/htdocs/publications/review/2021/04/15/decentralized-finance-on-blockchain-and-smart-contract-based-financial-markets.pdf

https://www.youtube.com/watch?v=w5aOJ7_6UX0

1 Like
#2

I personally don’t think ETH is decentralized. There does not seem to be a consensus network involved with ETH. I say this based upon the gas fees. Which could equate to a hidden fee, when it’s time to exchange their coins.

There is no for warning given that it will cost more money in ETH than one may be trying to exchange. Changing a USDT coin to ETH can cost more than the value you have in USDT if performing this transaction on a decentralized exchange. The gas price is hidden.

Eth has a lack of transparency and does not seem to embody the characteristics of a decentralized token. It operates with its own set of rules and very mutable. Their system also says that the miner fees are high due to activity, yet there is no way to even validate that the price of the gas fee is increased because there is lots of congestion.

This has just been my personal experience. I currently have $300 in USDT stuck in a Coinbase wallet because each time I go to exchange it for ETH, the system tells me that I need $400-$850 in ETH to complete my transaction due to high activity. When I go to move the USDT out of the wallet the Eth gas fee is always more than I actually have available in ETH, no matter how much ETH I have. Ridiculous, but you tell me? Very hesitant to Trust Eth!

If anyone has a solution on how to remove my $300, without spending more money than it worth, please let me know?

1 Like
#3

Any of you are experienced to work on a token? We have an issue with liquidity and we’re trying to fix it!

#4

hey mate whats your problem?

#5

Yeah, I have the same problem with USDC. I can’t move it because of the high gas fee. Thanks for sharing.