Input Output Global (IOG), the builder of decentralized finance (DeFi) Cryptocurrency Project Cardano (ADA), the world’s first blockchain Decentralization index.
Called the Edinburgh Decentralization Index (EDI), the tool is a partnership between IOG and the University of Edinburgh and aims to establish a transparent mechanism for evaluating the level of decentralization of public blockchain initiatives. Said In a blog post published Nov. 18.
In particular, EDI acts as a live tracker backed by a continuous ‘calculated and reviewed methodology’ under the supervision of a team from the University of Edinburgh.
How EDI works
In establishing the project’s level of decentralization, EDI will reportedly focus on risk factors associated with the crypto space. According to IOG, the decentralization review process aims to consider crypto market volatility and innovation in the blockchain space.
According to Cardano founder Charles Hoskinson, the establishment of the index is part of an initiative aimed at empowering users and investors.
“Decentralization is central to what makes a blockchain technology So unique and potentially revolutionary. By decentralizing the system, we are putting power back into the hands of everyday users and investors. What is currently lacking is a widely accepted industry standard that defines how decentralized a project is,” Hoskinson said.
Ultimately, EDI seeks to uphold the principles of blockchain technology and promote transparency, censorship, resilience, and integrity as benefits of decentralization.
Over the years, most projects launched in the crypto sector have been marketed as decentralized without specific industry measures. said to be able to build
At the same time, like Finnbolt reportHoskinson expressed dissatisfaction with projects rated as decentralized, although they have centralized principles.
“I’m tired of being in an industry that everyone says we’re decentralized. What do you mean? We don’t have a way to measure. It’s like saying <…> These are just bulges. These are just words. The problem is that decentralization is a measure of resilience. control measurement. It’s a measure of reliability and mandated by the way protocols are designed,” he said.
In this case, Hoskinson pointed out that decentralized projects should be evaluated on metrics guided by resilience, control, and reliability.