How Does Stake Distribution Influence Consensus? Analyzing Blockchain Decentralization
Fuente:
arXiv
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| Autores principales: | , |
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| Formato: | Preprint |
| Publicado: |
2023
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| Acceso en línea: | |
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| _version_ | 1866911882184491008 |
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| author | Motepalli, Shashank Jacobsen, Hans-Arno |
| author_facet | Motepalli, Shashank Jacobsen, Hans-Arno |
| contents | In the PoS blockchain landscape, the challenge of achieving full decentralization is often hindered by a disproportionate concentration of staked tokens among a few validators. This study analyses this challenge by first formalizing decentralization metrics for weighted consensus mechanisms. An empirical analysis across ten permissionless blockchains uncovers significant weight concentration among validators, underscoring the need for an equitable approach. To counter this, we introduce the Square Root Stake Weight (SRSW) model, which effectively recalibrates staking weight distribution. Our examination of the SRSW model demonstrates notable improvements in the decentralization metrics: the Gini index improves by 37.16% on average, while Nakamoto coefficients for liveness and safety see mean enhancements of 101.04% and 80.09%, respectively. This research is a pivotal step toward a more fair and equitable distribution of staking weight, advancing the decentralization in blockchain consensus mechanisms. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2312_13938 |
| institution | arXiv |
| publishDate | 2023 |
| record_format | arxiv |
| spellingShingle | How Does Stake Distribution Influence Consensus? Analyzing Blockchain Decentralization Motepalli, Shashank Jacobsen, Hans-Arno Distributed, Parallel, and Cluster Computing Computers and Society In the PoS blockchain landscape, the challenge of achieving full decentralization is often hindered by a disproportionate concentration of staked tokens among a few validators. This study analyses this challenge by first formalizing decentralization metrics for weighted consensus mechanisms. An empirical analysis across ten permissionless blockchains uncovers significant weight concentration among validators, underscoring the need for an equitable approach. To counter this, we introduce the Square Root Stake Weight (SRSW) model, which effectively recalibrates staking weight distribution. Our examination of the SRSW model demonstrates notable improvements in the decentralization metrics: the Gini index improves by 37.16% on average, while Nakamoto coefficients for liveness and safety see mean enhancements of 101.04% and 80.09%, respectively. This research is a pivotal step toward a more fair and equitable distribution of staking weight, advancing the decentralization in blockchain consensus mechanisms. |
| title | How Does Stake Distribution Influence Consensus? Analyzing Blockchain Decentralization |
| topic | Distributed, Parallel, and Cluster Computing Computers and Society |
| url | https://arxiv.org/abs/2312.13938 |