Banks & Finance

New Study Reveals Power Imbalance in Major Blockchain Networks

Published
Margarita Baskakova
Margarita Baskakova
International Managing Editor
Tim James
Tim James
Bitcoin blockchain cryptocurrency
Excessive concentration of power among a few participants undermines decentralisation, creating centralisation risks that could compromise network security, reduce trust and introduce systemic vulnerabilities.
blockchain

A new research paper by London-based think tank Exponential Science reveals significant inequality in how decision-making power is distributed across popular blockchain platforms like Bitcoin, Ethereum, Cardano, Hedera and Algorand.

The study «Consensus Power Inequality: A Comparative Study of Blockchain Networks» analysed data from 2022 to 2024 using economic tools like the Gini coefficient and Theil index to measure how evenly consensus power is shared. Consensus power refers to the influence participants have in validating transactions and shaping the network.

Key findings:

  • Hedera showed the most equal distribution of consensus power, followed by Bitcoin.
  • Ethereum and Cardano showed moderate inequality, with Ethereum becoming more centralised after its shift to Proof-of-Stake.
  • Algorand had the most unequal structure, with a small number of participants controlling most of the network’s influence.

Researchers say that these disparities could undermine blockchain’s core promise of decentralisation. Networks where a few players hold too much power risk becoming vulnerable, less secure and less democratic.

The report suggests blockchain developers must focus on fairer governance models, inclusive participation and transparent staking systems to keep blockchains resilient and trustworthy.

As blockchain adoption grows globally, including in Uzbekistan, understanding the risks of power concentration is critical for building more equitable and sustainable digital infrastructures.

Kursiv Uzbekistan also reports that Uzbekistan’s national payment system HUMO has launched a pilot digital token. 

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