Cardano (ADA) Makes Strides as Decentralization reaches 68%
As Cardano (ADA) begins to gain some momentum, Cardano has reached 68% decentralization, per the Daedalus wallet.
Decentralization is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group. In this case, 68% of the Cardano blocks are being handled by community stake pool operators.
At the time of writing this article Cardano (ADA) is trading at $00.183, with a 24 increase of 16.80%.
One of the main goals of the cryptocurrency and digital asset community is decentralizing finance. Decentralized finance is an experimental form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks, and instead utilizes smart contracts on blockchains.
Full decentralization + a large healthy ecosystem means that Cardano can’t be taken down by a single point of failure – e.g. a corrupt or incompetent party. If people are to build important applications and services on top of Cardano, then we want it to be as robust as possible. Full decentralization helps get us that robustness.At full decentralization all the blocks will be made by stake pool operators. The network will effectively be in the hands of the community.
At that time IOHK will disable the “d” parameter so they cannot change it. Right now they could change the “d” parameter to take away control of the network if they wanted. This only exists right now as a fail safe to protect the network in case of some catastrophic failure. So even though 68% of the blocks are currently made by stake pools, IOHK technically could change that whenever. Which basically means they are still in control and IOHK having control, means it is not decentralized and that is not good for a cryptocurrency.