Decentralization in PoS Blockchain Consensus: Quantification and Advancement

Fuente: arXiv
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Main Authors: Motepalli, Shashank, Jacobsen, Hans-Arno
Format: Preprint
Published: 2025
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author Motepalli, Shashank
Jacobsen, Hans-Arno
author_facet Motepalli, Shashank
Jacobsen, Hans-Arno
contents Decentralization is a foundational principle of permissionless blockchains, with consensus mechanisms serving a critical role in its realization. This study quantifies the decentralization of consensus mechanisms in proof-of-stake (PoS) blockchains using a comprehensive set of metrics, including Nakamoto coefficients, Gini, Herfindahl Hirschman Index (HHI), Shapley values, and Zipfs coefficient. Our empirical analysis across ten prominent blockchains reveals significant concentration of stake among a few validators, posing challenges to fair consensus. To address this, we introduce two alternative weighting models for PoS consensus: Square Root Stake Weight (SRSW) and Logarithmic Stake Weight (LSW), which adjust validator influence through non-linear transformations. Results demonstrate that SRSW and LSW models improve decentralization metrics by an average of 51% and 132%, respectively, supporting more equitable and resilient blockchain systems.
format Preprint
id arxiv_https___arxiv_org_abs_2504_14351
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Decentralization in PoS Blockchain Consensus: Quantification and Advancement
Motepalli, Shashank
Jacobsen, Hans-Arno
Distributed, Parallel, and Cluster Computing
Computers and Society
Emerging Technologies
Decentralization is a foundational principle of permissionless blockchains, with consensus mechanisms serving a critical role in its realization. This study quantifies the decentralization of consensus mechanisms in proof-of-stake (PoS) blockchains using a comprehensive set of metrics, including Nakamoto coefficients, Gini, Herfindahl Hirschman Index (HHI), Shapley values, and Zipfs coefficient. Our empirical analysis across ten prominent blockchains reveals significant concentration of stake among a few validators, posing challenges to fair consensus. To address this, we introduce two alternative weighting models for PoS consensus: Square Root Stake Weight (SRSW) and Logarithmic Stake Weight (LSW), which adjust validator influence through non-linear transformations. Results demonstrate that SRSW and LSW models improve decentralization metrics by an average of 51% and 132%, respectively, supporting more equitable and resilient blockchain systems.
title Decentralization in PoS Blockchain Consensus: Quantification and Advancement
topic Distributed, Parallel, and Cluster Computing
Computers and Society
Emerging Technologies
url https://arxiv.org/abs/2504.14351