Problems with centralization?¶

Problems with centralized payment systems¶

Censorship
- A central instance can deny a transaction
High fees, rent-seeking
- High fees: Centralized Infrastructure costs money and therefore high fees are the consequence. Also there are no incentives to keep the fees low.
- Rent-Seeking describes the activities of lobbyists who take influence on the decisions regarding the economy for their own profit. Rent-Seeking (DE)
Chargebacks
- Transaction can be reversed
Identity Theft
- Stealing a Credit Card lets the robber steal information by using
Onramp costs
- The Onramp costs to gather all people on the same payment platform are rather high

Inflation
- Since the currency can be printed by controlling authorities, centralized currencies suffer of an inflation problem.