Decentralization Scorecard Shows Bitcoin and Ethereum Vulnerable

ARK Invest and Glassnode have released a new scorecard to measure blockchain decentralization. The report defines decentralization as the smallest group of block-production entities needed to cross a protocol-relevant control threshold.

The analysis puts Bitcoin and Ethereum at three entities, while Solana requires 19 entities to reach this threshold. This critical resilience threshold measures how many large entities must coordinate to pass a concentration point governing block production or voting power.

Each network is evaluated differently: Bitcoin weights hash rate attributed to mining pools, Ethereum and Solana weight stake, and protocol rules determine what a given percentage can accomplish.