Permissionless blockchains were built on a promise: reduce reliance on central intermediaries through open participation and shared verification. But a new paper from the Bank for International Settlements (BIS) argues that the industry’s growth has moved in the opposite direction—toward fragmentation that dilutes ‘liquidity’ and weakens network effects rather than converging on a single scalable settlement layer.
In BIS Bulletin No. 126 published on July 6 (UTC), the authors describe an “economics of splitting” embedded in blockchain design. Activity on distributed ledger technology (DLT)… Read more
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