Bitcoin is more centralized than Ethereum, notes Evan Van Ness

Bitcoin is more centralized than Ethereum, notes Evan Van Ness


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Arman Sherinyan

The confrontation between Ethereum and Bitcoin maxis has erupted again, and the topic is decentralization

One of the biggest updates in the cryptocurrency market that made Proof of Work on Ethereum obsolete sparked discussions On the problematic topic: Which network is more decentralized at this point?

U.Today recently covered the distribution of stacked Ethereum on the network, and the worrying picture it paints as the largest coin holder on the network may not be as decentralized as it seems at first glance.

BTC pool
source: BTC.com

The other large portion of the accumulated Ethereum is held by centralized exchanges of around 30% if combined. However, the Bitcoin maxis that paints the network as more decentralized has its own issues with the dominance of some mining pools.

According to Van Ness, most of the blocks on Bitcoin are mined by only two groups: Antpool and Foundry, which are the two largest entities on the entire network. Seven hundred and sixteen of the last bitcoin blocks were built by four entities: Antpool, Foundry, F2, and Binance.

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While the distribution among bitcoin mining pools may appear uneven, it certainly appears to be more correct than that of Ethereum. Most of the hash is redistributed among five entities: Antpool, Foundry, F2, Binance, and ViaBTC. The first position accounts for 24% of the network hash rate, while the last position represents 9.4%.

The situation with pedigree on Ethereum is different; While the first place holds more than 30% of the accumulated Ethereum, the fifth holds only 2.2%. Technically, Lido could increase its share on the network and reach the dangerous 50% limit, which could cause serious problems for both auditors and investors.

However, centralized exchanges and new validators are more likely to choose pools and exchanges with less dominance in order to avoid potential centralization issues.





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