Cardano (ADA) developer Input Output Global (IOG) is working with the University of Edinburgh to create a new system that will determine if a blockchain is truly decentralized.
IOG says that most blockchains claim to be decentralized but these assertions are subjective because no standard framework for evaluating decentralization exists.
The technology company says the Edinburgh Decentralization Index (EDI) aims to address this problem.
“The EDI will create a unified framework capable of evaluating degrees of decentralization, and is applicable to data extracted from Bitcoin, Ethereum, Cardano, and other chains.”
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 of the initiative involves the launch of a research project that will define and measure decentralization.
“The EDI will be a live tracker underpinned by a continuously calculated and reviewed methodology, with calculations being carried out by a team at the University of Edinburgh.”
The firm says that the EDI will provide a standard of measurable decentralization for the blockchain industry and will have several use cases.
“It could be adopted by governments as part of a wider crypto regulatory framework, allowing users and organizations to determine a chain’s decentralization with more certainty.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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