New Decentralization Metrics Highlight Blockchain Capture Risks
- The critical resilience threshold for Bitcoin and Ethereum is three entities, while it is set at nineteen for Solana.
- As of September 6, Foundry USA, AntPool, and F2Pool accounted for over half (59.04%) of Bitcoin’s block production.
- Lido was reported to hold a significant share (21.17%) of Ethereum staking, representing a concentration risk within the network.
- The Nakamoto coefficient for Solana was reported as eighteen on September 6, indicating potential vulnerabilities in validator coordination.
- Approximately twenty percent of Ethereum nodes operate on AWS, raising concerns about infrastructure dependency.
The joint report by ARK Invest and Glassnode emphasizes the importance of understanding blockchain capture risks through various metrics such as stake concentration and node distribution. Institutions must assess these factors when considering blockchain technologies for settlement infrastructures.
With Bitcoin’s decentralization ranking highest due to its lower threshold of three entities compared to Solana’s nineteen, these findings highlight crucial differences in network vulnerability across platforms. (Source)
