Cardano builder IOG, University of Edinburgh launches world’s first decentralized blockchain index
Input Output Global (IOG), the developer of decentralized finance (DeFi) cryptocurrency project Cardano (ADA), has unveiled the world’s first blockchain decentralization index.
The tool, called the Edinburgh Decentralization Index (EDI), is a partnership between the IOG and the University of Edinburgh that aims to establish a transparent mechanism for assessing the level of decentralization of public blockchain initiatives, the IOG said in a blog post published on November 18.
In particular, EDI will act as a live tracker supported by continued ‘calculated and reviewed methodology’ overseen by a team from the University of Edinburgh.
How EDI works
By establishing a project’s level of decentralization, EDI will reportedly focus on risk factors related to the crypto space. According to the IOG, the decentralization review process seeks to assess volatility in the crypto market and innovations in the blockchain space.
According to Cardano founder Charles Hoskinson, the creation of the index is part of an initiative aimed at empowering users and investors,
“Decentralization is at the heart of what makes blockchain technology so unique and so potentially revolutionary. By decentralizing a system, we put power back into the hands of everyday users and investors. What we currently lack are universally accepted industry standards that define the extent to which projects are decentralized , Hoskinson said.
Finally, EDI seeks to preserve the principles of blockchain technology, promoting transparency, censorship, resilience and integrity as benefits of decentralization.
Over the years, most projects launched in the crypto sector have been marketed as decentralized without any specific industry initiative. In this case, the IOG stated that EDI could provide the basis for classification of cryptocurrency projects.
Hoskinson’s frustrations
At the same time, according to a Finbold report, Hoskinson expressed his frustration with projects considered decentralized, but they carry centralization principles.
“I’m tired of being in an industry where every single person says; we are decentralized. What does that mean? We have no way of measuring. It’s like saying we’re performing. <...> These are just swollen. These are just words. The problem is that decentralization is a measure of resilience. It is a measure of control. It’s a measure of trustworthiness, and it’s important in the way protocols are designed, he said.
In this case, Hoskinson noted that decentralized projects should be evaluated according to metrics guided by resilience, control and reliability.
