Cardano (ADA) founder Charles Hoskinson has stated that the cryptocurrency space has no concrete metrics to measure decentralization.
Hoskinson expressed his frustration with existing crypto projects that present themselves as decentralized without understanding the full meaning of the concept, he said during his keynote speech at the Rare Bloom event on October 26.
According to Hoskison, decentralization is necessary, and it should be guided by resilience, control, and reliability.
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“I am tired of being in an industry where every single person says; we’re decentralized. What does it mean? We don’t have a way of measuring. It’s like saying we’re performant. <…> These are just puffery. These are just words. The problem is that decentralization is a measurement of resilience. It’s a measurement of control. It’s a measurement of reliability, and it is incumbent in the way that protocols are designed,” he said.
Creating a decentralization metric
In this line, Hoskinson revealed that after challenging industry players to devise a metric for measuring decentralization, he was forced to take up the mantle after they failed to take action.
The approach resulted in the development of the Edinburgh Decentralization Index (EDI). He pointed out the EDI offers a blueprint for how a system’s decentralization should be measured but noted that there is a need for further development.
Additionally, Hoskinson suggested that understanding the decentralization metric can go a long way in assisting in classifying cryptocurrencies as part of the general regulatory outlook.
“Probably will end up being the way of determining sufficiently decentralized the difference between a security and a commodity in our industry. Just that simple,” he added.
He also stressed the importance of blockchain-based governance, stating that it is vital for the future of crypto projects’ growth and sustainability.
Cardano official wallet
In the spirit of decentralization, Hoskison added that there is no need to have a Cardano official wallet. He stressed that there is a need for identifying certifications to guide such a wallet instead of being tied to a single storage platform.
As reported by Finbold, Hoskinson had earlier revealed that Cardano hopes to get rid of the original wallet notion but create guidelines for developers to release certified wallets.
