Cardano is a Peer-to-Peer network. This means that anyone can run their own node, which is easy, cheap, and requires no third-party approval. Have you ever thought that a single entity could run multiple nodes? In theory, there’s nothing to prevent it. The question is what someone could gain by doing so. If an attacker running many nodes under one identity could gain some competitive advantage over other nodes, this would be a so-called Sybil attack. Peer-to-Peer networks must be able to resist this attack. Cardano uses ADA coins to prevent Sybil attacks and maintains the security and integrity of the network.
Blockchain decentralization must be based on expensive resources and not on the ability to run a node or create a wallet (account). The number of nodes in the network is completely irrelevant to decentralization. There are thousands of pools and 1.3M stakers in the Cardano network. This is the decentralization of the Cardano network, but it is important to remember that an individual can have multiple staking wallets or run multiple pools. The ADA holder does not need to run a full node and can participate in the decentralization of the network through the wallet and get rewarded for it. On-chain governance should work very similarly to block production. DReps will have as much decision-making power as the stake they get from delegates.
This article was prepared by Cardanians with support from Cexplorer.
Read the article: https://cexplorer.io/article/ada-is-the-best-protection-against-sybil-attacks