Large Entity Dominance

Definition ∞ Large entity dominance describes a situation where a small number of significant organizations or individuals exert disproportionate influence over a cryptocurrency network or market. This control can manifest in mining power, staking capital, or substantial holdings of a digital asset. Such concentration can raise concerns about decentralization, censorship resistance, and market manipulation. It represents a potential vulnerability in decentralized systems.
Context ∞ News reports often examine instances of large entity dominance, particularly in proof-of-work mining pools or proof-of-stake validator sets, to assess the true decentralization of a network. Regulatory bodies and community members frequently discuss its implications for market fairness and network governance. Monitoring this dominance provides insight into the power distribution within digital asset ecosystems.