A popular crypto analyst is naming the top five most decentralized cryptocurrencies.
“There are five layers of decentralization in cryptocurrency: the developer layer, the coin or token layer, the infrastructure layer, the blockchain layer and the external layer. I’ll start by saying that there’s no crypto project that scores perfectly on all five criteria but the top spot seems to belong to Bitcoin.
This is because there are dozens of individuals and institutions building on Bitcoin. BTC supply is broadly distributed, there is no shortage of infrastructure available to interact with the Bitcoin blockchain and the Bitcoin blockchain has over 15,000 full nodes.
The only thing Bitcoin is missing is true decentralization at the external layer, but this is where every cryptocurrency fails and I suspect not everyone would agree that this even counts as a layer.
In any case, according to a survey of various crypto experts by Cointelegraph last November, there aren’t any cryptocurrencies that come close to matching Bitcoin’s overall decentralization.”
He says Ethereum, Monero, Litecoin and Dogecoin follow Bitcoin and are still lacking in some aspects of decentralization. In the case of Monero, the privacy coin also faces regulatory issues.
“Ethereum and Monero seem to be the runners-up but as I discussed earlier, Ethereum’s decentralization still seems to be lacking on some layers. As for Monero, XMR is constantly at risk of getting delisted from centralized exchanges due to unreasonable crypto regulations.
There’s also Litecoin and, to some extent, Dogecoin, to consider but we all know these cryptocurrencies are also lacking decentralization at some layers, to put it mildly.”
The analyst says that it is still too early to identify the other most decentralized cryptocurrencies, but he sees the possibility of Cardano (ADA), Polkadot (DOT) and Solana (SOL) being included in the list.
“By now, you’ll have noticed that most of the more decentralized cryptocurrencies have been around for a while and many believe that it’s ultimately time that has allowed Bitcoin to decentralize so much. What this means is that it might still be too soon to say what the most decentralized cryptocurrencies are, but I have a feeling that Cardano, Polkadot and possibly even Solana will be the next runners-up.
At this rate, it looks like we will only find out for sure when the regulators come around and given the exponential rate of crypto adoption, it’s only a matter of time before they come unlocking.”
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