The Nakamoto Coefficient Is a Way to Quantify the Decentralization of a Blockchain. Bitcoin Blows Everything Else Out of the Water. It’s Not Even Close! : Bitcoin

Here’s a tweet that discusses the concept:

Here’s a hyperlink to an older weblog publish that does a deep dive into this:

Here’s a graph from a latest Make investments Solutions podcast. Bitcoin’s # is (conservatively): 7,349. The subsequent highest Nakamoto Coefficient on this listing is 34 from a crypto that shall stay anonymous. A number of the others are as little as 3! The gulf between Bitcoin and every part else is as large because the Pacific Ocean.

Why does this matter? Anybody who makes use of Bitcoin has far higher assurances that the chain is safe and immune to the actions of hostile events. The opposite chains? Not a lot…

Edit: Right here is how it’s calculated for these mathematically inclined: