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What Is the Risk of a Highly Centralized Cryptocurrency?

Risks include censorship, single point of failure, and potential seizure of funds by controlling entities.
Greeks.Live28.10.25

What Is the Risk of a Highly Centralized Cryptocurrency?

A highly centralized cryptocurrency poses risks because a small group of entities has disproportionate control. This control can lead to censorship, where transactions can be blocked, or seizure of funds by authorities or the controlling entity.

It also creates a single point of failure, making the network vulnerable to targeted attacks or operational failure.

What Are the Operational Risks of a Single Entity Controlling a Private Blockchain for Clearing and Settlement?
How Does the Geographic Distribution of Nodes Enhance Security?
What Are the Centralization Risks Associated with Private Transaction Relays?
What Is “Stake Centralization” and Why Is It a Concern for PoS Security?

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