Co-founder of TRON and former chief technical officer Lucien Chen announced he is leaving the project due to enhanced centralization. The latest cryptocurrency news report today of his decision.
Chen stated that the project has strayed from its founding principles which have also led to getting the platform more centralized. He revealed his decision on the Medium blog post on May 10.
In his announcement, the co-founder of TRON recalls the history of the TRX project and the successful growth that the token had in the past after it managed to become the 11th largest crypto by market cap. However, Chen pointed out that the current success of the project doesn’t explain the contradictions between himself and the other co-founder Justin Sun.
Among the biggest concerns, Chen argues that the project lost its initial goal and it’s not faithful to the founding principle of decentralizing the web. He claims that the project became excessively centralized and also neglected to foster internet-focused commercial applications. He continued to criticize Tron’s delegated proof-of-stake consensus mechanism and the Super Representative governance nodes system arguing:
“The DPOS mechanism of Tron is pseudo-decentralized. The top 27 SR nodes (block nodes) have more than 170 million TRX votes, and most of them are controlled by Tron. It’s hard for other latecomers to become block nodes, so they cannot participate in the process of block production.”
Chen continued to explain further that some of the nodes have ‘’ more than 90 percent of the votes with only a few voters.’’ This means that the vote of the retail investor has been sidelined. He added:
“Token distribution is centralized, Super Representatives are centralized, code development is centralized. Even the community is organized under centralization.”
As mentioned in the best cryptocurrency news sites, Chen pointed out that as a former CTO who helped during the platform building, he knows that real internet applications can’t function in the TRON Network. Chen will be launching its own decentralized blockchain project named ‘’Volume Network.’’ The new venture will be true to his ideological principles and he will focus on mining-based decentralization.
The Tron Foundation has recently fixed a crucial vulnerability which could have destroyed the blockchain. They awarded the cybersecurity research who identified it with $1,500 bounty.
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“Currently, you can invest in seven cryptocurrencies on Robinhood Crypto: Bitcoin, Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, Litecoin, and Dogecoin. You can also track price movements and news for those and 10 additional cryptocurrencies.”Crypto enthusiast has avoided going to New York because the state has a very stringent regulations system for the crypto sector. For some, BitLicense is a classic move of regulation-before-innovation which is a law that creates an unnecessary burden for small startups by making them go through expensive procedures. For example, there is a $5,000 fee to NYDFs with no approval guarantee as well as the $45,000 worth of legal paperwork as it was revealed by one of the BitLicense applicants Coinsettler Jaron Lukasiewicz in 2015. Costs like these have influenced many New York startups to find a place with a friendlier crypto climate such as California or even European countries such as Switzerland. At the same time, crypto startups that managed to build a financial foundation for themselves, now are trying to find a comfortable place while entering New York. As mentioned in the altcoin news previously, Robinhood is the 10th company in a period of four years that received a BitLicense. According to the vice president of product Josh Elman, this decision to go into Wall Street is ‘’a crucial next step.’’:
“We’ve introduced millions of people to equity investing on Robinhood, and want to do the same for everyone interested in crypto.”The Fintech startup now has six million users around the US and by entering New York Robinhood plans to add a few million more. Their networth reached $5.6 billion after the last funding round that closed in March 2018. In the meantime, Robinhood managed to raise about $539 million capital so far.
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“Samsung Electronics appears to be moving to integrate cryptocurrencies to Samsung Pay, which accounts for 80 percent of the South Korean simple payment market. The company has recently transferred the blockchain task force (TF) of the mobile business division to the service business division.’’Previously in 2018, the Korea Herald reported that Samsung Pay made a 58 percent increase in its users base. The industry tracker WiseApp found that the platform was mostly used as a financial application in late 2018 where more than 10.4 million users got their hands on it. In 2017, the platform had about 6.6 million users which make an incredible step forward for Samsung. The 10 million users represent the 20 percent of the entire South Korean population and the platform has also thousands of users around the world that use the application because of its technology called magnetic secure transmission. This technology enables users to transact at a conventional point of sale terminals. Now, the strategy of Samsung Pay is to make sure that a niche market is secured and will expand its user base even further. Samsung already integrated a crypto wallet-the Samsung Blockchain Wallet back in February along with its Samsung S10 device which allows users to send, receive and hold cryptocurrencies in the built-in wallet. The South Korean altcoin news outlet Donga noted:
‘’Samsung Pay has recently extended the transaction period for overseas users and integrated an international payment processing service, aggressively targeting the global financial services market.’’With reports suggesting that the tech giant is considering the possibility of launching a blockchain network, it is expected that Samsung will continue to march forward to target the rapidly growing sector. Under the leadership of the current vice president of the business division Kim Yong-Jae, the blockchain task force at Samsung has started new other crypto projects.
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