A new system is currently being created to determine if a decentralized blockchain exists. For this purpose, the developer of Cardano (ADA), Input Output Global (IOG), is collaborating with the University of Edinburgh.
Real decentralization.
IOG claims that most so-called decentralized blockchains are not. However, these declarations are subjective because there is no standard framework for evaluating decentralization. The technology firm says the Edinburgh Decentralization Index (EDI) aims to address this issue. With the fall of FTX, Binance is once again ahead of other exchanges. The platform could be a danger in terms of decentralization. In fact, some claim that the exchange is starting to have too much power in the crypto market, so that it affects users.
Too little decentralization is a real danger. This is the main characteristic of cryptocurrencies. If this decentralization were to be weakened by the introduction of players into what could be called virtual monopolies, investor confidence could be undermined.
Decentralized true quality
The EDI’s ambition is to create a unified framework capable of evaluating decentralization steps. This framework is particularly applicable to data mined from Bitcoin, Ethereum, Cardano. IOG says the index will assess the degree of decentralization of a blockchain based on multiple layers. Some of these factor differences include API, consensus mechanism, hardware, software, network, tokenomics, governance, and geographic distribution of collectors.
The first phase of the initiative involves launching a research project that will define and measure decentralization. The EDI will therefore be a live tracker supported by a constant calculation and review methodology. The calculations are already done by a team from the University of Edinburgh. The firm claims that EDI will provide a decentralized, measurable standard for the blockchain industry and will have multiple use cases. It may be subject to its acceptance by governments as part of a wider cryptographic regulatory framework. So, the idea is to allow users and organizations to determine chain decentralization with more certainty.
Source: The Daily Hodl
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