The first thing we have to show that tokens you purchase are not decentralized. Mining determines decentralization and I will try to explain why.
On a token that you purchase what verifies the transaction? How many verification's does it take to become verified? How do you know that there are no counterfeits or changes to the white paper?
There is no proof of any of these things, this is why Bitcoin, Litecoin, Dash, Dogecoin and all minable coins are the only ones I trust let me try to break this down a little.
When a miner is mining, they are trying to solve highly sophisticated mathematical computation in order to unlock a safe. Best analogy I can give you. Let us take Bitcoin that uses SHA256 Algorithm.
SHA stands for Secure Hashing Algorithm. And there are 256 0’s and 1’s in each computation or hash. So if there are 6 zeros at the end of a hash the computers, or asics are scrambling to solve that hash in order to open the safe and get the block.
The block is just a number of Bitcoin transactions. Once the block is solved on a pool, the miners then are verifying all the transactions in that block, these are all called shares. Shares are successful accepted verified transactions.
This is the best analogy I can give you. Bitcoin has no central authority, each miner verifies the transactions, No transaction can be entered into the blockchain without a successful verification. This is why I never listen to any person that has no computer programming skills, they would know there is no way to control Bitcoin or any of the other minable coins.
The verification can only come from miners running the software either through computers with USB pod ASIC or an ASIC miner. The software is the protocol that all the miners on the network automatically obey, for it is compliance up front.
I will personally never trust any coin that is not mined, I do not know where the verification is coming from, and there is no way to prove it.
