The information recently released by Chain.info confirms the statement that in today's cryptocurrency market, 'whales', exchanges and speculative traders control most of the pricing.
While these data confirm that 10.6% of the distribution is entirely on the 5 centralized exchanges, the conclusion of the chain analysis that 3.7 million Bitcoins are lost in less than 5 years in the supply chain leads to 15% more on the centralized exchanges.
Of course, this is a doubt that may arise in many people Why are we worried?
The nodes on a blockchain network are expected to broadcast to the entire network the blocks they form. If a node, or a group of nodes, starts controlling a large part of the network, it may privately form blocks and not broadcast them to the network. The public version of the blockchain will still be followed by the network and the node could engage in double-spending by first spending its money on the public blockchain and then on the private one.
After that, they can broadcast their private version of the blockchain and form longer chains, as they control most of the network. The other participants would consider this to be the right chain, according to the longest chain law. Previous transactions not included in this chain will be reversed, giving access to other people's money to the malicious nodes.
The fact that many customers hold a significant share of their holdings in centralized exchanges by blowing away the basic principles of cryptocurrency may have major repercussions in the future. We need to know the truth that any habitat can only survive if the basic rules of the environment are followed.
In these days of emerging crises, we believe that the advent of the DEXToken Protocol, which will be able to overcome the market fluctuations caused by over-speculation using the new AMM Algorithm and bring about a fair market system, will make a big difference in the market.
DEXToken protocol - Detailed analysis and comparative study at a glance
I hope all my readers have been benefited from this small piece of knowledge. Kindly add your valuable suggestions to this article
Thank you
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