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A Unified Framework for Analyzing Blockchain Decentralization
- The article presents a unified framework for analyzing blockchain decentralization by systematizing the existing literature into a cohesive structure.
- The framework includes layers such as hardware, software, network, consensus algorithms, cryptocurrency economics, client API, governance, geography, and case studies for comprehensive analysis.
- Ensuring security, privacy, and stability in distributed ledgers involves a diverse distribution of resources across independent parties to eliminate single points of failure.
- The methodology outlined in the framework can be applied to various blockchain layers, including Layer 1 (main chain), Layer 2 protocols like the Lightning Network, and decentralized applications (DApps).
- Future research directions include exploring the relationship between decentralization and fault tolerance, defining quantitative metrics for each layer, and creating a blockchain decentralization index.
- Increasing decentralization in one aspect may lead to centralization in another, emphasizing the need for further investigation to balance trade-offs and determine the significance of each layer and metric.
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