Hello everyone!
This is ZELIX, introducing a new concept of metaverse and creating a multi-ecosystem.
In this guide, we will be introducing you to the decentralized multi-metaverse project ZELIX, and this is the 19th part.
In our previous installment of the Multi-Metaverse Project ZELIX Guide, we provided the Blockchain Dapp Market Status & Trend and the future trajectory of the ZELIX ecosystem.
In this guide, we will guide you the ‘Blockchain Decentralization Measurement’ and the future trajectory of the ZELIX ecosystem.
Blockchain Decentralization Measurement
Balaji Srinivasan proposed that a public blockchain such as Bitcoin consists of six subsystems.
The subsystems identified by Srinivasan include mining, clients, developers, exchanges, nodes, and ownership.
Based on this chart, the Nakamoto and Gini coefficients are utilized for assessing the level of decentralization of Bitcoin and Ethereum.
Nevertheless, in the context of exchanges, we maintain that the centralization of exchanges has minimal repercussions on the decentralization of the overall network once a certain level of decentralization has been achieved. Furthermore, we anticipate a diminishing influence of exchanges on the network as regulatory frameworks are further developed to integrate virtual assets into the system.
As a result, we determine the Nakamoto coefficient by analyzing the five subsystems, excluding exchanges.
Our analysis results in two conclusions.
Initially, it is apparent that Bitcoin and Ethereum have exhibited increased levels of decentralization when compared to 2017, as indicated by Balaji Srinivasan.
According to the Nakamoto coefficient, Ethereum and Bitcoin have exhibited increased decentralization in their respective developer participation and asset ownership.
Secondly, the Nakamoto coefficient for the overall blockchain network remains unchanged, however the Gini coefficient for both cryptocurrencies has risen, suggesting an enhancement in decentralization.
According to the Gini coefficient, Bitcoin has shown enhancements in decentralization for clients, developers, and asset holders, while Ethereum has also exhibited improvements in decentralization for mining, clients, developers, and nodes. Upon evaluation using these two complementary metrics, substantial improvements in decentralization have been observed across all five subsystems during the last five years.
Research regarding the quantification of decentralization is still in progress in order to propose effective quantification methodologies.
Galaxy Digital Research calculates decentralization by utilizing the Supply Equity Ratio, which assesses the level of inequality in asset ownership.
In conclusion
Today, we provided you with a short overview of the Measuring blockchain decentralization.
We will be back with a better ZELIX Guide.
Thank you.
ZELIX Official Link
. Homepage : https://zelix.io
. Medium : https://medium.com/zelix
. Twitter : https://twitter.com/zelix_official
. Facebook : https://www.facebook.com/zelixofficialfb
. Telegram Group : https://t.me/zelixofficial
. Telegram Channel : https://t.me/zelixofficial_channel
