On Decentralization. Part I

Last week at the Financial Cryptography conference I made a presentation about a role of decentralization for a public blockchain. Now I want to describe better my thoughts and position. I’m going to make few blog posts about it, this one is the first in the series.

If we will come to a decentralization metric from 0 to 100%, where 100% is fully decentralized blockchain. I believe that the average value for the top 10 blockchains will be less than 50%, likely less than 25%.

Most in the top 10 don’t even try to be decentralized. A centralized blockchain is a current trend, it is more effective for the most of the use cases and easier to compete in marketing, so most of the current blockchains are fine with being centralized.

If we speak only about the protocol, a peer-to-peer network, in most of the cases we have a decentralized network. That’s where people usually stop thinking about decentralization.