Mark Mason
Well-known member
What Is Coin Supply Distribution and Why Does It Matter?
Decentralization is a common topic in cryptocurrency, and in fact is one of the main underpinnings of using distributed software to run asset networks rather than companies, banks, or governments. Bitcoin pioneered the proof-of-work mining approach, with computers (and later specialized mining machines) solving complex equations in order to secure the network, each awarded a portion of the new coins created in proportion to their participation. This has led to a collection of global currencies whose supply is theoretically accessible by all and restricted to no one, reducing fears of centralization of the monetary supply and the manipulation risk that comes with it, as has been a criticism of central banking. It’s important to look at different coin supplies, and how their distribution models work, in order to get a grasp of decentralization in cryptocurrency.
Many coins have a more centralized coin supply than advertised
Poof-of-work coins that had a well-publicized public launch are generally considered to be decentralized, as anyone around the world theoretically had the opportunity to participate in mining, meaning that the supply is likely spread far and wide. Upon closer examination, however, many projects have ended up with a much less diverse distribution than otherwise advertised.
Read more: https://www.dashforcenews.com/what-is-coin-supply-distribution-and-why-does-it-matter/
Decentralization is a common topic in cryptocurrency, and in fact is one of the main underpinnings of using distributed software to run asset networks rather than companies, banks, or governments. Bitcoin pioneered the proof-of-work mining approach, with computers (and later specialized mining machines) solving complex equations in order to secure the network, each awarded a portion of the new coins created in proportion to their participation. This has led to a collection of global currencies whose supply is theoretically accessible by all and restricted to no one, reducing fears of centralization of the monetary supply and the manipulation risk that comes with it, as has been a criticism of central banking. It’s important to look at different coin supplies, and how their distribution models work, in order to get a grasp of decentralization in cryptocurrency.
Many coins have a more centralized coin supply than advertised
Poof-of-work coins that had a well-publicized public launch are generally considered to be decentralized, as anyone around the world theoretically had the opportunity to participate in mining, meaning that the supply is likely spread far and wide. Upon closer examination, however, many projects have ended up with a much less diverse distribution than otherwise advertised.
Read more: https://www.dashforcenews.com/what-is-coin-supply-distribution-and-why-does-it-matter/