Justin Bons Explains Dimensions of Blockchain Decentralization

Justin Bons

Cryptocurrency enthusiast and researcher Justin Bons recently sparked a conversation on Twitter about the various dimensions of decentralization within blockchain networks. In a series of tweets, he explored the complexities of measuring decentralization and highlighted the need for a nuanced approach to assessing it.

The Illusion of Perfect Decentralization

Bons kicked off the discussion by addressing a common misconception about decentralization. He pointed out that many investors are invested in the “illusion of perfect decentralization,” believing that one blockchain chain prevails in all aspects. However, Bons emphasized that decentralization is a multi-faceted spectrum, and no chain excels in every dimension.

1/18) What is decentralization & how do we really measure it?

We will rate BTC, ETH, SOL, XRP, ADA, AVAX & TRX at the end!

Too many falsely use decentralization as a shield to justify their mediocracy!

These six principles measure decentralization (the distribution of power):

— Justin Bons (@Justin_Bons) February 19, 2024

“Counting the number of nodes is meaningless, as there is no Sybil protection against node spam What does matter is the distribution of unique validators (nodes involved in block production) As they have skin in the game, whether PoW or PoS!” he wrote.

Downtime: A Misleading Metric

Responding to a query about downtime as a measure of decentralization, Bons clarified that downtime alone is not indicative of decentralization. While network disruptions can occur due to factors related to decentralization, they can also stem from unrelated issues. Bons highlighted the importance of considering various factors when assessing decentralization.

Another Twitter user, Joel Valenzuela, contributed to the conversation by suggesting additional criteria for measuring decentralization, such as the number of parties running validators and governance token ownership. Bons agreed that these factors are crucial and acknowledged that his initial thread provided a simplified overview.

The Importance of Detailed Analysis

In response to inquiries about the methodology for counting unique validators, Bons explained that a more detailed analysis would be necessary to determine the “true” number. He acknowledged that his thread utilized shorthand and abstracted away some complexities. Bons also addressed concerns about individuals or entities exerting undue influence, highlighting the importance of political decentralization.

Bons’ Twitter thread sheds light on the nuanced nature of decentralization in cryptocurrency networks. While decentralization is a core principle of blockchain technology, assessing its various dimensions requires careful consideration of multiple factors. As the cryptocurrency space continues to evolve, researchers and investors alike must adopt a holistic approach to evaluating decentralization.

Author: Jinka

Jinka is a self-trained crypto journalist, passionate about happenings in the industry.