Bitcoin Outshines Rivals in Decentralization Study

A joint study by ARK Invest and Glassnode found that Bitcoin (BTC) leads in decentralization among top cryptocurrencies, including Ethereum (ETH) and Solana (SOL). The researchers examined various measures of decentralization, such as auditability, ownership distribution, and geographic resilience. According to the report, 63% of Bitcoin nodes operate behind Tor, making it more difficult for centralized hosting providers to gain control.

The study also found that just three Bitcoin mining pools could potentially cross the network's 51% hash-rate threshold, while Ethereum has a similar coefficient of three with a 33% threshold for staking. Solana, on the other hand, had a much higher Nakamoto coefficient at 19 entities.

ARK and Glassnode noted that no blockchain leads across every measure, each making trade-offs between decentralization, security, and performance. The researchers emphasized the importance of understanding these nuances when evaluating a blockchain's decentralization.