The issue of regulation within the world of blockchain technology is unlikely to be resolved any time soon.
This apparent lack of security has brought regulated and unregulated blockchains into the spotlight.
So, what’s the difference?
And can true decentralization be achieved alongside regulation?
How a Blockchain Works
One of the greatest perks of the blockchain landscape is decentralization.
While this procedure may seem complex, blockchains can broker transactions in a matter of seconds.
So why are thieves still stealing record-breaking volumes of crypto and blockchain assets like NFTs?
Regulated blockchains are rarer to find and are generally centralized in nature.
This prospect can be significantly off-putting for cryptocurrency enthusiasts.
Despite this, regulated blockchains can carry plenty of useful perks.
These centralized chains can even add an authentication process before users can pull up the data pipe.
This means that, unlike fully distributed and decentralized systems, your information is never fully private.
What Are Unregulated Blockchains?
Unregulated blockchainsheavily populate the cryptocurrency ecosystemand allow users to join whenever they want.
Here, users have no restrictions, and participation in the consensus process is open to everyone.
Today’s leading cryptocurrencies, like Bitcoin and Ethereum, operate on unregulated blockchains.
The latter’s chain currently hosts the world’slargest array of decentralized finance applicationsand platforms that millions of users enjoy.
These unregulated blockchains are also known as “public” blockchains because they are largely completely decentralized.
In short,once your crypto is gone, it isn’t coming back.
