Cardano (ADA) developer helps create new method to evaluate blockchain decentralization
Cardano (ADA) developer Input Output Global (IOG) is collaborating with the University of Edinburgh to create a new system that will determine whether a blockchain is truly decentralized.
The IOG says that most blockchains claim to be decentralized, but these claims are subjective because no standard framework exists for evaluating decentralization.
The technology company says the Edinburgh Decentralization Index (EDI) aims to solve this problem.
“EDI will create a unified framework capable of evaluating degrees of decentralization, and is applicable to data sourced from Bitcoin, Ethereum, Cardano and other chains.”
The IOG says the index will assess a blockchain’s level of decentralization based on multiple layers, including API, consensus mechanism, hardware, software, network, tokenomics, governance and validators’ geographic distribution.
The first step in the initiative involves the launch of a research project that will define and measure decentralisation.
“EDI will be a live tracker underpinned by a continuously calculated and revised methodology, with calculations carried out by a team at the University of Edinburgh.”
The firm says EDI will provide a standard of measurable decentralization for the blockchain industry and will have multiple uses.
“It could be adopted by governments as part of a broader cryptoregulatory framework, allowing users and organizations to determine a chain’s decentralization with greater certainty.”
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