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apparent contradiction re: (de)centralization

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thatlarkin

Am I understanding correctly? I'm open to all opposing viewpoints. I just listened to a half-hour long plea to embrace decentralization and P2P market forces, then later, a half-hour of how the inherent value of LTBcoin is determined by one person, pretty much the most centralized a system can be. Again, I'm not trolling. I really want to understand better what I perceive to be contradictory messages.

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  • pooktwo

    @thatlarkin Am I understanding correctly? I'm open to all opposing viewpoints. I just listened to a half-hour long plea to embrace decentralization and P2P market forces, then later, a half-hour of how the inherent value of LTBcoin is determined by one person, pretty much the most centralized a system can be. Again, I'm not trolling. I really want to understand better what I perceive to be contradictory messages.

    So assets like LTBC and FLDC are centralized to a point. Someone still has to distribute the funds and that is the creator of the token. So it depends on the trust you have in that person or company. However, since lets say LTB has a heavy interest in LTBC, it would not be in the best interest for them to do something to screw with the coin by lets say introducing more coins in the market that goes outside of their set schedule. They collect a lot of LTBC for things like advertising, so doing something to hurt the coin will hurt their own investment and time spent in the coin.

    That being said, it is in deep centralized (semi centralized because the people who own the token LTBC still cannot have it taken away from them). I forsee a future in which some assets need to be centralized, such as a stock built inside of the blockchain using the counterparty protocol

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  • odolvlobo

    @thatlarkin ... a half-hour of how the inherent value of LTBcoin is determined by one person, pretty much the most centralized a system can be. ...

    While Adam may have a big influence on the price, he cannot determine it. Buyers and sellers can trade it on exchanges and set their own prices. Adam could drive the price down by selling low, but that could only last until he runs out of LTBcoin. He could drive the price up by buying high, but that could only last until he ran out of money. How then does Adam control the price of LTBcoin?

    Edit: Well, I looked into it, and everything I wrote is true as long as Adam can't create more LTBcoin. As a matter of fact, he can and he does. So, everything I wrote does not apply to LTBcoin. On the other hand, Adam says he will decrease the generation according to a fixed schedule over 5 years, and ultimately, the supply will be fixed at 510,000,000 LTBcoin. The problem is that you have to trust him on this point, and that is another point of centralization.

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  • Cryptonaut

    User created assets are by nature centralized, at least in terms of "inherent value". Ultimately you always have to trust that the person or group/team/company behind a token is going to deliver on what they say they will and keep the project going. It's basically just a better (or gimicky, depending on how you look at it) way of getting involved with a project or community, and potentially earning some money or gaining some other value to boot :p

    The part where it is decentralized is in the handling and security of the token itself. Other then keeping the website going and accepting LTBC, all we have to do is create the weekly issuances and send them out. Once the coins are in other peoples wallets, it's all on them and we don't even need to worry about it, and backed by the bitcoin blockchain.

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