Nakamoto Coefficient
From HandWiki
Short description: Measure of a blockchain decentralisation
The Nakamoto Coefficient is a measure of a blockchain networks decentralisation, representing "the minimum number of entities whose proportions one can sum to get to 51% control."[This quote needs a citation]
The calculation is named after Satoshi Nakamoto and was created by Balaji Srinivasan and Leland Lee in the article "Quantifying Decentralization" [1] and has become a popular measure [2] [3] [4]of comparing the decentralisation of blockchain networks.
References
- ↑ Srinivasan, Balaji S.; Lee, Leland (July 27, 2017). "Quantifying Decentralization". https://news.earn.com/quantifying-decentralization-e39db233c28e.
- ↑ "The Nakamoto Coefficient: An accurate way to measure the decentralisation level of a project". August 18, 2022. https://www.cnbctv18.com/cryptocurrency/nakamoto-coefficient-an-accurate-way-to-measure-decentralisation-level-of-project-14516612.htm.
- ↑ "Measuring Bitcoin’s Decentralization (Full Length)". September 15, 2020. https://coinmetrics.io/measuring-bitcoins-decentralization/.
- ↑ "The Nakamoto Coefficient and How it Can Impact the Robustness of a Blockchain". October 17, 2022. https://hackernoon.com/the-nakamoto-coefficient-and-how-it-can-impact-the-robustness-of-a-blockchain.
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