Decentralization Gap: Bitcoin and Ethereum vs Solana
A recent joint study by ARK Invest and Glassnode has shed light on the decentralization of popular cryptocurrency networks. The researchers investigated Bitcoin, Ethereum, and Solana, revealing striking differences between them.
The study found that in both the Bitcoin and Ethereum networks, it requires only three independent actors to coordinate their efforts to reach a critical threshold. In contrast, Solana needs 19 organizations to achieve this level of control.
Looking specifically at the Bitcoin network, researchers discovered that three mining pools - Foundry USA, AntPool, and F2Pool - combined hold enough processing power to surpass the 51% threshold. However, it's essential to note that this doesn't mean these companies directly control the network.
The critical threshold for Ethereum is considered to be 33% of the total stake amount, which can only be surpassed by the three largest staking organizations. These organizations pool ETH from various users and perform verification on the network.