Cardano (CCC:ADA-USD) is built upon the idea of decentralization. This is a core tenet of blockchain. Decentralization is central to the idea of blockchain technology, and central to the argument for why people should care about blockchain, and thus Cardano.
Cardano has just managed to decentralize one of three important elements of its ecosystem. Let’s look at why that’s important, and talk about the remaining elements to be decentralized.
Decentralization at Cardano
One of the underlying arguments in favor of blockchain technology is that decentralization is achievable. Indeed, decentralization leads to power by the people, and ostensibly for the people.
The same argument in favor of decentralization applies to Bitcoin (CCC:BTC-USD). Yet, there is a big difference between the degree of centralization between Cardano and Bitcoin in their block production.
Cardano relies on stake pool operators to control block production on its network. The important news here is that Cardano’s 2200 stake pool operators are fully decentralized. In and of itself, this news is fairly difficult to work with. Because blockchain technology and terminology remains so nascent, this kind of news is difficult to comprehend. Fortunately, we can make a pretty good comparison with Bitcoin.
85% of Bitcoin block production is done by the network’s 10 most influential pools. Unfortunately this leads to a situation in which smaller stakes often have no choice but to lend their computing power to the large pools. The large pools