SNEAK PEEK

• Validators’ functions are vital for measuring network decentralization.
• Common infrastructural reliance implies geographic and power concentration.
• Diversified hosting solutions enhance network security and decentralization.

As blockchain technology gains recognition, the role of decentralization in bolstering network resilience is critical. The cryptocurrency research platform Messari spotlights this, noting Sunny Dece and Sam Padilla’s contributions to operational decentralization in Proof-of-Stake (PoS) networks.

1/ Decentralization is key to a resilient Proof-of-Stake network.

Let’s explore the benefits, challenges, and new standards set by @sunnydece and @theSamPadilla for measuring and improving operational decentralization in public PoS networks. 🧵 pic.twitter.com/pDJdH4QW1y

— Messari (@MessariCrypto) June 1, 2023

To set the stage, it’s worth taking a moment to understand the crucial role of validators within a PoS system. As per sources, they serve as the backbone of global computing platforms, validating and recording transactions to maintain consensus on the blockchain. In addition, their function is a key factor in assessing the degree of decentralization within a network.

However, the question of operational decentralization in PoS networks is multifaceted. This includes hardware requirements, ongoing expenses, stake delegation, and the limits on the active validator set. Each of these factors has implications for the network’s diversity of operators and the choices they make regarding resource-intensive infrastructure.

The Overbearing Role of Similar Infrastructure in PoS Networks

In assessing the landscape of PoS networks, per Messari’s analysis, one prevalent trend is the heavy reliance on similar infrastructure and early-developed clients. This leads to a noticeable geographic skew towards certain regions, with the United States and Germany being heavily represented. Additionally, AWS (Amazon Web Services) has become a prevalent hosting solution for many validators.

8/ Hosting distribution also affects operational decentralization.

Most networks rely on hosted servers due to convenience and cost efficiency. @awscloud, @OVHcloud, @Hetzner_Online, and @googlecloud are dominant providers. pic.twitter.com/QLtrQqH059

— Messari (@MessariCrypto) June 1, 2023

Another key insight is that stake concentration generally tends to be higher than validator distribution. This imbalance raises concerns about the potential centralization of power within the network, thereby contradicting the principle of decentralization fundamental to PoS systems.

In conclusion, as blockchain networks continue to evolve, there is an urgent need to prioritize operational decentralization. Validator operators must diversify their hosting solutions to prevent a concentration of power and mitigate potential risks associated with using similar infrastructures. Simultaneously, technologies such as Diversified Validator Technologies (DVT) can be leveraged to augment security.

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoAiStream. Web3 Data Intelligence. Knowledge Amplified. Access Here.
• Minting the Future w Adryenn Ashley. Access Here.
• Buy and Sell Shares in PRE-IPO Companies with PREIPO®. Access Here.
• Source: https://investorbites.com/sunny-dece-and-sam-padillas-blueprint-for-robust-pos-networks/