ARK Report Reveals Key Differences in Decentralization Among Major Blockchain Networks
A new report from ARK Invest and Glassnode has shed light on the decentralization of major blockchain networks, including Bitcoin, Ethereum, and Solana. The report, titled 'The Decentralization Spectrum: Design Tradeoffs in Digital Assets,' explores how these networks achieve decentralization through different design choices.
The study covers six measurable parameters to compare the blockchains: auditability, security, governance, ownership, verification costs, and robustness. According to the report, Bitcoin excels in terms of distribution of ownership and geographic robustness. Ethereum finds a balance between decentralization and programmability, while Solana is focused more on speed and scalability.
The main insights from the report include control thresholds, which measure how many entities would need to collaborate to gain critical control of block creation. Bitcoin and Ethereum have a control threshold of three, whereas Solana has one of 19. The report also highlights the different procedures for entering and exiting the networks for participants.