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Cardano Ranks First Among Most Decentralized Blockchain Networks, Beating Bitcoin and Ethereum

Peer-reviewed blockchain network Cardano is living up to its promise of resolving the blockchain trilemma of security, scalability, and decentralization. A new report from the Edinburgh Decentralization Index (EDI) shows that the Cardano blockchain is the most decentralized protocol in the emerging crypto ecosystem.

Most Decentralized Blockchain

Cardano Takes 58, Bitcoin And Ethereum Manage 2

Decentralization is at the crux of the entire blockchain ecosystem. It references how distributed the mining or staking power is. The more decentralized a network is, the lesser the probability of one party controlling the entire system and destroying the integrity of the platform.

While many people in the crypto space have unanimously elected Bitcoin and Ethereum as the most decentralized networks due to their popularity, new data from the EDI says otherwise.

According to the EDI Dashboard, the Cardano blockchain has a score of 58 on the Nakamoto Coefficient. Bitcoin and Ethereum, on the other hand, managed a meager 2. Other top protocols like Bitcoin Cash scored 3, Bitcoin fork Litecoin snagged 2, fellow Ethereum killer Tezos walked away with 7, and Zcash rounded up with 2. 

Most Decentralized Blockchain

Source: EDI Dashboard

For those unfamiliar with the Nakamoto Coefficient, it is a metric that tracks the minimum number of entities that collectively control 50% of the resources of a network. The resources in the case of blockchain protocols are the mining or staking power inherent in the network. 

Hence, the higher the number of different entities that have a large stake in the network, the more decentralized and foolproof the platform is. Cardano’s 58 Nakamoto Coefficient score depicts that it is more robust in terms of being decentralized relative to its counterparts.

Most Decentralized Blockchain

Source: EDI Dashboard

The Nakamoto Coefficient was not the only metric highlighted by the EDI dashboard. The Gini Coefficient also saw the Cardano blockchain flying with a score of 0.906 while Bitcoin pooled in 0.9704 and the Ethereum blockchain scored 0.996. The Gini Coefficient works differently from the Nakamoto Coefficient. It captures the degree of inequality in the distribution of blocks in a protocol. Values close to 0 often depict high equality while those close to 1 indicate otherwise. A network with a value close to 1 only means that one entity produces most or all blocks.

A look at the Shannon Entropy or Information Entropy was also covered. The Shannon Entropy covers the expected amount of information in a distribution in a block. Usually, a higher value of entropy (or information) indicates higher decentralization (or lower predictability).

Most Decentralized Blockchain

Source: EDI Dashboard

In the case of how each blockchain ranks, the peer-reviewed Cardano protocol leads with a score of 8.12. In this regard, the Tezos blockchain comes second with a score of 5.28 while Bitcoin and Ethereum manage 2.97 and 3.26, respectively.

Running on the self-designed Ouroboros proof-of-stake (PoS) consensus mechanism, the Cardano blockchain describes itself as the third iteration of the distributed ledger tech (DLT). The platform aims to solve the infamous blockchain trilemma of scalability, security, and decentralization by providing a provably fast, decentralized, yet secure blockchain experience for the entire globe.

Cardano Mints 10 Million Blocks

The Ouroboros PoS network has also scored another milestone in the process. The Cardano blockchain minted its 10 millionth block. 

The 10 millionth block was minted by the JAPAN4 pool and is a testament to the continued enthusiasm the Cardano network has retained across its ecosystem. With Cardano leading on several metrics, the sky is just a starting point for the peer-reviewed and science-based project.

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