Solana's Hidden Strength: A Nuanced Look at Decentralization
A joint report by ARK Invest and Glassnode has shed new light on the decentralization debate, revealing that while Solana scores lower than Bitcoin and Ethereum on a common decentralization metric, it may be more resistant to collusion among network participants.
The report analyzes the resilience of major blockchain networks, using the Nakamoto coefficient, a measure of the minimum number of entities required to reach a threshold that could influence the network. Solana's Nakamoto coefficient is 19, significantly higher than Bitcoin and Ethereum, which both scored three.
This suggests that a small group of participants would find it harder to collude and disrupt Solana's block production. However, Solana is more geographically concentrated in terms of network infrastructure, with 68% located in Europe, which introduces a different kind of risk.