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ARK Invest and Glassnode Release White Paper on Decentralization in Major Blockchains
ARK Invest and Glassnode have published a joint white paper titled "The Decentralization Spectrum: Design Tradeoffs In Digital Assets," which evaluates the decentralization, security, and resilience of Bitcoin, Ethereum, and Solana. The research introduces a framework that assesses these major Layer-1 blockchains based on four design features and six measurable dimensions, presenting decentralization as a spectrum rather than a binary characteristic.
The report highlights that Bitcoin, Ethereum, and Solana make distinct engineering choices that reflect their priorities. Bitcoin emphasizes simplicity and security through a proof-of-work consensus mechanism, while Ethereum is transitioning to proof-of-stake to balance programmability with decentralization. Solana, on the other hand, focuses on speed and throughput, which necessitates different tradeoffs. The authors argue that these differences are intentional and should be evaluated based on verifiable network properties rather than market narratives.
The collaboration between ARK Invest and Glassnode has evolved since 2021, when ARK began utilizing on-chain analytics for its digital asset research. This latest study expands the analysis from Bitcoin to include Ethereum and Solana, indicating a shift in ARK's approach to evaluating these networks with the same rigor it has applied to Bitcoin.
The white paper underscores the importance of decentralization metrics, which impact a network's censorship resistance and regulatory risk. As regulatory bodies consider the implications of decentralization on token classification, the research provides a solid foundation for issuers and investors to support their positions in this evolving landscape.
Source: KLEA News