Nakamoto coefficient explained: Measuring decentralization in blockchain networks

Discover the Nakamoto coefficient, a key metric for assessing blockchain decentralization. Learn how it measures control, its significance and limitations.

Decentralization involves spreading control and decision-making across a network instead of a single authority. 

Unlike centralized systems, where one entity controls everything, decentralized blockchains distribute data among participants (nodes). Each node holds a copy of the ledger, ensuring transparency and reducing the risk of manipulation or system failure.

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