Decentralization Ratio

A decentralization ratio is an informal measure of how widely control over a blockchain network is spread among independent participants. There is no single standard formula: analysts may compare the share of block production or stake held by the largest validators or mining pools, the share of the token supply held by the top addresses, or the share of governance votes cast by a few large holders. A low concentration suggests a network that is harder to capture or censor, while a high one points to a small group that could coordinate to change rules or halt activity. The best-known single figure is the Nakamoto coefficient, the minimum number of entities needed to control a critical share of the system. Also see decentralization and the 51% attack.