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.
[adinserter block="1"]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.”
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