What Is "Stake Centralization" and Why Is It a Concern for PoS Security? ▴ Learn

What Is “Stake Centralization” and Why Is It a Concern for PoS Security?

Stake centralization occurs when a small number of entities (individuals, exchanges, or staking pools) control a disproportionately large amount of the total staked cryptocurrency. This is a security concern because it lowers the effective cost and coordination difficulty for a 51% attack.

If a few large entities collude or are compromised, they can easily gain a majority stake and manipulate the chain, undermining decentralization.

What Is the Concept of “Mining Centralization” and How Does It Increase 51% Attack Risk?

How Does Decentralization Mitigate the Risk of a 51% Attack?

What Is the Concept of ‘Miner Centralization’ and Its Risk to PoW Security?

What Happens to the Remaining Allowance If a Contract Only Uses a Portion of It?