Decentralisation Cardano vs Bitcoin

Why can the Cardano Blockchain become more decentralised than the Bitcoin Blockchain?

How can the level of decentralisation be measured and compared to Bitcoin?

Bitcoin is running around 10.000 nodes

Daedalus Wallet has around 2000 staking pools.

Can these values be compared?

Does a running Daedalus Wallet acts as a P2P node as well?

Hello @Paul_Kiman

it is very important to difference everything clearly.

  • The Daedalus Wallet is a full node client → it downloads a full copy of the cardano blockchain and validate transactions on its own.
  • Staking pools are the “miners” of the cardano blockchain.

The purpose of a full node is to have a full copy of the blockchain. So more nodes mean that we decentralize the blockchain how it is yet and was in the past.

The purpose of a miner/stake pool is to validate new transactions, put them into one block and add this block to the blockchain. So more stake pools mean that we decentralize our future blockchain.

So this both values cant be compared to each other. Bitcoin have nodes and miners. Cardano have nodes and stake pools. Both values (nodes and stake pools) are different values in different facets of decentralization.

If you want to you can compare the value of full nodes each one have OR how much miners/stake pools each one have.

I hope this answer is helping you a little bit. :wink:

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Hi All,

I think it also has to do with who owns all of the bitcoin mining rigs. If most of them are owned by just a handful of companies / countries, and if the cost of mining prohibits the average person or group form doing it, then things will become more centralised over time.

Hopefully Cardano stays cheap enough for anyone to spin up a pool (and raise enough stake to create blocks!)

Cheers,
D

Hi Thanks for your reply. I am looking for arguments when people claim Bitcoin is more decentralized than Cardano how can this be disproved by objective numbers ?

Hey,

ive just found this articel but it is a little bit older, but i would think nothing have changed so far Business Insider - Biggest mining companys

So the problem is: The difficulty to mine a block on the bitcoin network is so incredibly high that you and me wouldnt have even a chance to mine 1 block in our lifespan. Now big companys offer mining pools. They centralized the mining power of many people under the control of them.

The article which ive linked here at the top explain it in a good way: If the three biggest companys put there mining power together they have the power over more than 51% from the whole network. In other word: On the bitcoin Network are having three persons the might to perform an 51-attack.

Cardano pool overview
On this link you can see that the 51% are owned by single individuals like you and me. Even if every corporation would work together the power over the 51% are hold by normal people yet.

*Edit: Ok the distribution of mining power in the bitcoin network have changed, its now 4 people :joy: here a link: Blockchain Chart of Hashrate Distribution

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