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Crypto assets have noted significant adoption over the past few years. As the industry went mainstream more utility emerged. It is notable that the main factor due to which many are bullish on digital assets is its decentralized nature which protects our privacy and disrupts intermediaries from the world of finance. However, Catherine Flick, a senior lecturer in computing and social responsibility at de Montfort University Leicester (DMU) says that these assets are centralized and actually not decentralized.
Is crypto centralized or decentralized?
Flick argues that the crypto industry has a colonialist mindset. She also pointed out that the digital ecosystem is centralized and entities here are typically relying on cheap labor.
Simultaneously, she also claims that many artists that have created popular collections in the form of crypto collectibles or NFTs are underpaid. Notably, many critics argue that artists are unable to make money in the industry and have control on their work due to tech opportunism.
We can see Yuga Labs, the firm behind Bored Ape Yacht Club, has managed to make money worth millions of dollars. But it is significant to note that the lead artist behind the collection did not get her fair share. Amid the artist complaining about the unsatisfactory compensation to Rolling Stone, a broader discussion about the role of artists in the sector ensued.
Early adopters are only beneficiaries
Following the launch of ApeCoin, the crypto that was airdropped to Bored Ape Yacht Club NFT holders, some opined that venture capital firms of the likes of Andreessen Horowitz benefited the most from the token launch. Notably, the factor underscored the centralization of digital assets. Following the fact, Flick stressed that most of the individuals are left holding a bag in digital currency while early adopters are among the only beneficiaries.
Non-Fungible Tokens are more centralized
In the current scenario, we have seen the popularity of the Bored Ape Yacht Club and CryptoPunks collectibles. It is notable that the firm behind BAYC has also acquired the CryptoPunks collection earlier this month from Larva Labs. And now one centralized entity is controlling the two most popular collections that triggered a wave of criticism from those who are worried that the Web3.0 ecosystem is not even remotely as decentralized as it is supposed to be.
