A centralization metric quantifies the degree to which control or influence within a decentralized system resides with a limited number of entities. This measurement assesses various aspects, such as token distribution, mining power, validator participation, or governance voting shares. Lower metric values generally signify a more distributed and robust network structure. These metrics are critical for evaluating a system’s adherence to decentralization principles.
Context
Centralization metrics are frequently cited in crypto news when evaluating the health and security of blockchain networks and decentralized applications. Debates around network resilience, resistance to censorship, and governance models often reference these metrics. Observing trends in centralization metrics can indicate shifts in power dynamics or potential vulnerabilities within digital asset ecosystems.
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