Algorand Foundation

The Truth About Algorand's "Decentralization"

By hifi.bitcoin | HiFi Bitcoin | 24 Jun 2023


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Bitcoin is the only truly decentralized monetary network in existence. No other monetary network, including those residing on top of other blockchains, is as resistant to control as Bitcoin.

Algorand, on the other hand, is not decentralized:

  • The Algorand Foundation controls at least 28% of all Algorand tokens in existence (which by itself suggests that the Foundation has a great deal of control over the Algorand blockchain).
  • The Foundation's employees refer to the Foundation and the blockchain interchangeably.
  • The Algorand Foundation admits that one of its primary roles is to foster decentralization of the blockchain (which is a tacit admission that Algorand isn't currently decentralized).

The term "decentralization" has real meaning. It has real value. And people are disadvantaged when they're presented with broken associations between real decentralization, like that of Bitcoin, and fake decentralization, like what Algorand has.


 


Differences between Bitcoin's decentralization and Algorand's "fake decentralization" aren't actually that difficult to spot:

  • Bitcoin is decentralized because no single entity controls the network. Meanwhile,Algorand is controlled by the Algorand Foundation.
  • Bitcoin is transparent, meaning that anyone can see the transactions that take place on the network. On the other hand, Algorand isn't transparent, and the Foundation has the power to censor transactions.
  • Bitcoin is permissionless, meaning that anyone can participate in the network. By comparison, Algorand is permissioned, meaning that the Foundation has the power to actually decide who can participate in the network.

If you're looking for a truly decentralized monetary network, then Bitcoin is the only real option if you ask me.


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Good luck on your Bitcoin journey!

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hifi.bitcoin
hifi.bitcoin

I am an avid Bitcoin enthusiast. I publish The HiFi Bitcoin Letters, a recurring newsletter on Bitcoin: https://hifibitcoin.substack.com/p/your-bitcoin-one-stop-shop


HiFi Bitcoin
HiFi Bitcoin

My goal is to provide education on Bitcoin and related topics.

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