Decentralization at Risk: Three Entities Control Bitcoin and Ethereum

A new report by ARK Invest and Glassnode reveals that both Bitcoin and Ethereum require just three entities to reach critical control thresholds, challenging traditional perceptions of decentralization in these major cryptocurrencies.

The findings highlight a significant concern about governance and influence within blockchain networks. According to the analysis, this level of control could be achieved with a small number of players, potentially undermining the decentralized nature of these platforms.

Bitcoin's balanced geographic distribution of nodes is noted as a positive aspect, with around 63% running through Tor. In contrast, Ethereum relies heavily on cloud service providers like AWS, which raises concerns about its decentralization compared to Bitcoin.

Solana's infrastructure requires 19 entities to reach similar control levels, indicating higher centralization. The report suggests that this could lead to increased scrutiny of the governance structures of these cryptocurrencies and potentially influence market dynamics and investor sentiment.