Cardano has been praised for its decentralisation, making it the second-most decentralised asset in the cryptocurrency sector. The study, based on crypto researcher Justin Bons’ decentralisation index, gives ADA a score of 35 out of 60, trailing only Ethereum’s 43 but outperforming other rivals like as Bitcoin, Solana, and Ripple.
Cardano creator Charles Hoskinson answered with a nuanced perspective on the situation. He claimed that resistance to IOHK (Input Output Hong Kong) should not be seen as a measure of decentralisation. Instead, Hoskinson stated that what actually important is the code’s governance and transformation into a viable open-source project with contributions from many organisations other than IOHK.
The issue over decentralisation is more complex than it looks on the surface. It is not just about having a large number of nodes or validators, but also about how power is distributed throughout the network. Bons identified six concepts for measuring decentralisation: validator and client distribution, permissionless design, technological trade-offs, governance design, and political decentralisation.
Cardano excels in several of these areas. It has a high unique validator count and a network devoid of permissioned parts. Its inherent delegation structure and the upcoming deployment of on-chain governance show its dedication to a decentralised future. However, the notion of scant pushback against IOHK raises concerns about the network’s political decentralisation.
ADA’s score, however, reflects its robust structure, which contains a large number of unique validators as well as a strong position against permission-based features. With on-chain governance in the horizon, Cardano’s decentralisation will be enhanced even more.
