Decentralization of a Cryptocurrency is not possible without pure Proof of Stake...
DPOS (Distributed Proof of Stake) means you trust just a few computers to run your Currency..
Masternode Only POS (Centralized Proof of Stake) means you trust just a few computers (and even fewer servers!!!) to run your Currency.
POW (Proof of Work) with limited coin supply means:
#1 Transaction Fees rise with time
#2 As the Economic Benefit of Mining relative to total value of the Cryptocurrency declines, it takes less and less mining cost as a % of the Currency to have Centralized Computing Power.
If the Economic Incentive to provide Computing Power is 0.1% of the Value of the Currency, versus 10% of the value of the Currency, it would cost 100x LESS to control the same % of Mining Power (or else lose money). This means that as Block Reward SHRINKS, the relative cost to control mining power declines.
And this doesn't include the Centralized "trusting" that "some computer" "somewhere" is storing your Currency (your currency IS literally ON the Blockchain, and where the full node is, is where your currency IS).
This is why I'm a fan of PIVX.
- It's built to be a COMMUNITY driven Currency.
- It's run ONLY by its Community and they ONLY pay Community Members to provide computing power, and because everyone is running the Currency, Transaction Fees are burned from Coin Supply, effectively benefiting everyone (and not paid to Miners / Masternodes).
- It utilizes Double Validation of every Block, based on randomly selected Validators. This means Computing Power gets more and more diversified and decentralized as PIVX grows!
- With PIVX, you store the entire Full Node (the "Blockchain") on your Computer - so everyone HAS their own Currency.
Check out PIVX!
slack.pivx.org
pivx.org
@_pivx on Twitter!