I have recently noticed an interesting discussion about the true decentralization of Bitcoin and whether the proof-of-work mechanism is its real source. David Schwartz, the former CTO of Ripple, presented a completely different perspective from what most Bitcoin supporters believe.

The story began when an XRPL analyst observed that Foundry USA, the world's largest Bitcoin mining pool, successfully mined 7 consecutive blocks recently. This event alone wouldn't have been concerning if not for what followed—a rapid reorganization of the chain involving other mining pools. Most importantly, the mining power of this group approached the threshold for selfish mining profitability, a well-known academic scenario that could lead to system exploitation.

Here came Schwartz's important observation. He frankly stated that Bitcoin's decentralization does not come from its use of the PoW mechanism; quite the opposite—proof of work itself represents a centralized force that Bitcoin must continually fight against. This perspective may shock some, but it reflects a tangible reality.

The dilemma Schwartz raised is genuine and profound. Changing the mining algorithm could send a dangerous signal that Bitcoin's rules are not as fixed as investors believe, potentially undermining confidence in its immutability. But leaving things as they are heavily relies on the assumption that large miners will act in good faith—and this is not a strong guarantee.

Interestingly, XRPL investigator Vit pointed out that the XRP ledger does not face the same reorganization challenges because it has true finality. This reflects the fundamental difference between the various consensus mechanisms—Bitcoin relies on the longest chain, while XRP depends on the agreement of trusted validators.

Ultimately, Schwartz suggests that the Bitcoin community might choose to coexist with this problem for now, because attempting to fix it could open Pandora's box. But this leaves the question hanging—can Bitcoin maintain its true decentralization in the long term if mining power remains so concentrated?