Even though Bitcoin Cash has made quite a name for itself in the past few months, there are still plenty of concerns regarding its network. BitPico claims that the BCH network is still heavily centralized, with 98% of its nodes running on the same servers.
Bitcoin Cash Node Concerns
Network nodes play an integral role within the cryptocurrency industry due to the fact that they help process and distribute network transactions. Even so, most of the Bitcoin network nodes are found on AWS servers, which can be a very big problem unless it is properly resolved.
BitPico is now pointing out that Bitcoin Cash suffers from a very similar problem. In fact, the company claims 98% of all BCH nodes are currently hosted on Alibaba’s servers. While that is not necessarily a problem, having so many network nodes spaced out across servers controlled by the same company eventually leads to a high degree of centralization.
More on the Matter
So many cryptocurrency enthusiasts rely on centralized companies to host cryptocurrency network nodes. This is completely counterproductive as cryptocurrency is primarily all about decentralization. For some reason, people prefer a convenient and easy solution regardless of the impact it may have on the network itself.
As is always the case, comments like these need to be taken with a grain of salt. There will be plenty of debates regarding these claims and the information provided accordingly. Some users are already refuting these claims, which is only to be expected at this point in time. If people ran more nodes on hardware they had at home, discussions like these would become far less common.
BitPico does not have the best of reputations when it comes to Bitcoin Cash. The firm is intent on fracturing the network, and this latest “reveal” seems to further justify their plan of attack.
Please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. CryptoMode is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.