Nakamoto coefficient explained: Measuring decentralization in blockchain networks
Discover the Nakamoto coefficient, a key metric for assessing blockchain decentralization. Learn how it measures control, its significance and limitations.
Decentralization involves spreading control and decision-making across a network instead of a single authority.
Unlike centralized systems, where one entity controls everything, decentralized blockchains distribute data among participants (nodes). Each node holds a copy of the ledger, ensuring transparency and reducing the risk of manipulation or system failure.
