Power distribution, in the context of blockchain, refers to how control and influence are allocated among network participants, particularly concerning validation and governance. It assesses the extent to which decision-making and operational authority are spread across many independent entities. A wide distribution is key to achieving genuine decentralization. This allocation determines the system’s resistance to single-entity control.
Context
Crypto news frequently discusses power distribution in relation to mining pools, staking concentrations, and the influence of large token holders in governance. Concerns about centralization often arise when power becomes too concentrated within a few entities. Maintaining equitable power distribution is a continuous challenge for decentralized networks. The health of a network’s decentralization is often judged by this metric.
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