Cryptocurrency is either centralised or decentralised. Catherine Flick, a researcher at De Montfort University’s School of Computer Science and Informatics, says it has grown into a highly centralised network governed by a limited group of technocrats.
According to a report, Catherine Flick suggested that the cryptocurrency sector has a “colonial mentality” in which power is concentrated in the hands of a few players who depend on cheap labour.
“These individuals are essentially sailing their ships across the sea in order to arrive first, post their flags, and earn money. But at the price of those who do the work, who are less likely to earn the same kind of gains and are more likely to be exploited or unaware of the risks,” Flick said.
She said that some notable artists responsible for some of the industry’s hottest non-fungible token (NFT) collections have been underpaid. For example, the principal artist behind the famed Bored Aped Yacht Club (BAYC) collection, All-Seeing Seneca, apparently got unequal recompense for her labour.
NFTs Raise Additional Concerns About Centralization
Additionally, Flick emphasises the fact that decentralisation implies the absence of a single man or corporation in charge. However, this seems to no longer be the case, as there appears to be a “decentralization of so much ostensibly decentralised things.” As an example, Yuga Labs, developer of the Boring Aped Yacht Club, bought the CryptoPunks and Meebits collections from Larva Labs.
The NFT markets are another indicator of the crypto sector’s centralization. According to the internet professor, if the market is genuinely decentralised, users should be in control and able to trade NFTs independently.
In 2021, NFTs gained significance. Despite the fact that sky-high prices for NFT artworks and crypto tokens continue to dominate headlines, Flick cautions investors from entering the sector. Early adopters will reap the benefits, she asserts, while the rest of humanity will be reduced to bag carriers.
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