Dfinity Reacts to Critics Over Decentralization and Privacy Features

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Dfinity Reacts to Critics Over Decentralization and Privacy Features

Mar 4

In brief

  • Users of the Dfinity platform have criticized some of its features like NNS design, accumulation of NNS voting rights over time, the strictness of maintaining a single Internet identity, and lack of decentralization on the project.
  • The founder has expressed his faith in the community, encouraging them to take responsibility as with great power comes great responsibility.
  • Dfinity founder Dominic Williams made a blog post on May 28th, stating that his intention is to integrate his project with Ethereum rather than compete.

During an ‘Ask me Anything‘ session on Reddit, Dfinity, the team of Internet Computer platform for smart contracts, responded to counter the opinion of members criticizing their decentralization protocol and privacy features.

Dfinity aims to offer its distributed network containing nodes, subsets, data centers, and users through a central Network Nervous System (NNS). The NNS will be responsible for selecting the nodes that will become a part of the network. It will also discipline nodes that are not acting accordingly and ensure seamless communications amongst the ICP’s components & participants

Users have criticized NNS a lot due to its centralization method of voting. Also, the lack of clarity in data collection, single point of failure, and other issues surrounding the Protocol’s code have not been satisfactory for users.

Some users also expressed their fears that the early backers of Dfinity might maintain a centralized hold over the system due to their accumulated voting power.

Comments from Dfinity Officials

Diego Prats, Dfinity’s product director, explained in his response that Dfintiy Foundation has no control over the NNS’ majority power. He highlighted the need for the community to assume responsibility as great responsibility accompanies great power. He expressed his faith in the community taking up their responsibility in the project even though it is early.

However, critics have mentioned that 74% of ICP tokens in circulation are with investors, advisors, the Dfinity team, etc. But Nick from the Dfinity Foundation countered the claim on the centralization of 74% ICP tokens. According to him, seed donors only hold 24.72% of ICP tokens in supply.

Meanwhile, the founder Dominic Williams shared his roadmap for the project in a 28th May blog post. He outlined the plans for the project to integrate Ethereum. According to him, Dfinity will work with Ethereum hand-in-hand and not as its competitor.

“The end goal is the fully decentralized Internet Computer that cannot be controlled by DFINITY or anyone else.”

This statement was made by Dfinity researcher Jens Camenisch while addressing the concerns on lack of decentralization on the projects.

On user concerns over the strictness of maintaining a single Internet Identity while using the network, Diego said that Authentication is an open standard design built as a service for app developers to use or roll out at will. And is not gotten only via internet identity for apps/canisters on the IC.