Around the upcoming national cryptocurrency of China (DCEP) there are new rumors — it seems that it really is fully centralized. Local news outlets spread the information that the bandwidth of the DCEP will be 220 thousand transactions per second, that is ten thousand times more than Bitcoin with its 7 transactions per second.
Decentralized blackany arranged in such a way that the confirmation of one of the transaction nodes on the network takes a lot of time. Sacrificing the processing speed of the translation, one can achieve independence from each node of the system. But the Chinese seem to be to use a single centralized node that makes such a huge bandwidth.
How will the Chinese blockchain?
Yang Vang, chief researcher of the Institute of Finance Renmin University of China, said that the high speed of the blockchain is a good sign.
From the point of view of technology, digital currency of China shows the absolute superiority both in terms of security and speed. It will surpass competitors in quality user experience.
In July, the news from the Libra project is the development of a DCEP is setting the pace. It was reported that the throughput of a centralized cryptocurrency from Facebook was to reach thousands of transactions per second. The Chinese have surpassed this number hundreds of times.
On the one hand, the rate superpower on the adoption of the blockchain will increase the popularity of the industry of cryptocurrency in China and in other countries. On the other hand, China definitely will use the blockchain for thorough surveillance of each transaction of their citizens. And this will create problems for ordinary people, while the blockchain may become a nightmare for them.
However, the head of the research Department of the Central Bank of China Mu Changchun recently tried to reassure the public and promised that the government “will satisfy people’s requirements for anonymity in their transactions.” DCEP is presented as a tool against those who are laundering money, evading taxes or finances the activities of criminal groups.
Analysts Binance conducted a study of a centralized cryptocurrency at the end of August. In the report, the exchange noted that the DCEP will really gather important information from user to user.
Unlike the private coins, the system’s Central hub will be able to collect information. In the end, the person will be attached to the respective individual wallets that makes DCEP fully non-anonymous, unlike Bitcoin.
The conclusion is obvious: to compare the national cryptocurrency of China with Bitcoin or other real coins correctly. Rather it can be called a more modern version of the Fiat currencies that we use today in everyday life. And since the national digital coin will depend on a single governing body, its users will not be able to be confident in the continuous availability of the service. Rather, for certain individuals will be sanctioned.
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