What Is the "Nakamoto Coefficient" as a Measure of Decentralization? ▴ Learn

What Is the “Nakamoto Coefficient” as a Measure of Decentralization?

The Nakamoto Coefficient is a metric that quantifies the minimum number of independent entities (such as mining pools, validators, or developers) that would need to collude to compromise a key aspect of a blockchain network. A higher Nakamoto Coefficient indicates a more decentralized and therefore more resilient network.

It is a more nuanced measure than simply counting the total number of participants, focusing on the concentration of power.

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