<p>this graphs show the nakamoto coefficient and mav factor epoch by epoch</p>
<p><a href="https://datastudio.google.com/u/0/reporting/3136c55b-635e-4f46-8e4b-b8ab54f2d460/page/p_9vyfu6gorc" rel="nofollow noreferrer">https://datastudio.google.com/u/0/reporting/3136c55b-635e-4f46-8e4b-b8ab54f2d460/page/p_9vyfu6gorc</a></p>

CC BY-SA 4.0
2022-01-31T16:43:35.893Z
Wow that's amazing. If I'm reading this correctly (which I might not be since it's new to me) the graph represents the Nakamoto coefficient when looking just at stake pools. As I understand the concept of the coefficient, it should look at the ecosystem as a whole. For example, there might be many stake pools but they all run the same software and maybe that software is highly centralized in some way. Do you know if there's a more holistic measure of the Nakamoto Coefficient for the ADA ecosystem?
Paymahn Moghadasian
CC BY-SA 4.0
2022-04-22T00:10:07.850Z
You are correct, see the interesting CIP-50 define k-effective.
https://github.com/michael-liesenfelt/CIPs/blob/CIP-Liesenfelt-Shelleys_Voltaire_decentralization_update/CIP-Liesenfelt-Shelleys_Voltaire_decentralization_update/README.md
TheStophe
CC BY-SA 4.0
2022-01-28T22:14:07.013Z
2022-01-30T19:40:35.837Z
2022-01-30T19:40:35.837Z
Markus - CLIO1
<p>Balaji <a href="https://news.earn.com/quantifying-decentralization-e39db233c28e" rel="nofollow noreferrer">introduced</a> the Nakamoto Coefficient several years ago:</p>
<blockquote>
<p>The basic idea is to (a) enumerate the essential subsystems of a decentralized system, (b) determine how many entities one would need to be compromised to control each subsystem, and (c) then use the minimum of these as a measure of the effective decentralization of the system. The higher the value of this minimum Nakamoto coefficient, the more decentralized the system is.</p>
</blockquote>
<p>He also tried to perform an initial analysis of the coefficient for:</p>
<p>bitcoin:</p>
<p><a href="https://i.sstatic.net/d34A2.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/d34A2.png" alt="enter image description here" /></a></p>
<p>and ethereum:</p>
<p><a href="https://i.sstatic.net/hOAKV.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/hOAKV.png" alt="enter image description here" /></a></p>
<p>What's the Nakamoto Coefficient for Cardano? Charles regularly claims Cardano is (among) the most decentralized cryptocurrencies in the world - has anyone tried to quantify that?</p>

<decentralization>
What is the Nakamoto Coefficient of Cardano?
# What is the Nakamoto Coefficient of Cardano?

(Asked by: username_0 on 2021-11-24)

Balaji [introduced](https://news.earn.com/quantifying-decentralization-e39db233c28e) the Nakamoto Coefficient several years ago:

> The basic idea is to (a) enumerate the essential subsystems of a decentralized system, (b) determine how many entities one would need to be compromised to control each subsystem, and (c) then use the minimum of these as a measure of the effective decentralization of the system. The higher the value of this minimum Nakamoto coefficient, the more decentralized the system is.

He also tried to perform an initial analysis of the coefficient for:

bitcoin:

[![enter image description here](https://i.sstatic.net/d34A2.png)](https://i.sstatic.net/d34A2.png)

and ethereum:

[![enter image description here](https://i.sstatic.net/hOAKV.png)](https://i.sstatic.net/hOAKV.png)

What's the Nakamoto Coefficient for Cardano? Charles regularly claims Cardano is (among) the most decentralized cryptocurrencies in the world - has anyone tried to quantify that?

**Tags:** decentralization

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## 1 answers

### Answer by username_1 on 2022-01-28. Score: 2

this graphs show the nakamoto coefficient and mav factor epoch by epoch

<https://datastudio.google.com/u/0/reporting/3136c55b-635e-4f46-8e4b-b8ab54f2d460/page/p_9vyfu6gorc>

> **Comments:**
> **username_0**: Wow that's amazing. If I'm reading this correctly (which I might not be since it's new to me) the graph represents the Nakamoto coefficient when looking just at stake pools. As I understand the concept of the coefficient, it should look at the ecosystem as a whole. For example, there might be many stake pools but they all run the same software and maybe that software is highly centralized in some way. Do you know if there's a more holistic measure of the Nakamoto Coefficient for the ADA ecosystem?  
> **username_2**: You are correct, see the interesting CIP-50 define k-effective. https://github.com/michael-liesenfelt/CIPs/blob/CIP-Liesenfelt-Shelleys_Voltaire_decentralization_update/CIP-Liesenfelt-Shelleys_Voltaire_decentralization_update/README.md  

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