Node Consolidation

Definition ∞ Node Consolidation describes a trend where a diminishing number of entities or organizations operate a disproportionately large share of the validating or mining nodes within a blockchain network. This concentration of operational power can impact network structure.
Context ∞ The phenomenon of node consolidation raises important considerations regarding the decentralization, security, and censorship resistance of blockchain networks. Concerns often center on the potential for reduced network diversity and altered governance power distribution. Observers closely monitor this trend for its implications on the long-term health of distributed ledgers.