Decentralization Study Finds Bitcoin Remains Most Decentralized Despite Concentrated Mining Power
A recent study by ARK Invest and Glassnode has shed light on the decentralization of several major cryptocurrencies, including Bitcoin, Ethereum, and Solana.
The report found that while Bitcoin's mining power is concentrated in three pools, surpassing 51% hash rate, independent miners can quickly switch pools, limiting control. This concentration of mining power could be a concern for some, but the study suggests it has little impact due to the decentralized nature of the network.
Ethereum requires three staking entities to exceed a 33% stake threshold, with pooled delegation complicating control assumptions. Solana needs 19 validators to cross the same threshold but relies heavily on commercial data centers, posing infrastructure risks.
The study ranks Bitcoin as the most decentralized overall due to its dispersed ownership, auditability, and resilient infrastructure, followed by Ethereum and Solana. The report highlights different decentralization trade-offs across these blockchains.