Consensus Layer

These graphs represent the historical decentralisation of block production for various blockchain systems. Each metric is calculated based on the distribution of blocks across the entities that produced them in each time period. Read more...

The Nakamoto coefficient represents the minimum number of entities that collectively control more than 50% of the resources (in this case, the majority of mining / staking power).

The Gini coefficient represents the degree of inequality in a distribution. Values close to 0 indicate high equality (in our case, all entities in the system produce the same number of blocks) and values close to 1 indicate high inequality (one entity produces most or all blocks).

Shannon entropy (also known as information entropy) represents the expected amount of information in a distribution. Typically, a higher value of entropy indicates higher decentralization (lower predictability).

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration. It is defined as the sum of the squares of the market shares (as whole numbers, e.g. 40 for 40%) of the entities in the system. Values close to 0 indicate low concentration (many entities produce a similar number of blocks) and values close to 10,000 indicate high concentration (one entity produces most or all blocks).

The Theil index captures the lack of diversity, or the redundancy, in a population. In practice, it is calculated as the maximum possible entropy minus the observed entropy. Values close to 0 indicate equality and values towards infinity indicate inequality.

The max power ratio represents the share of blocks that are produced by the most “powerful” entity, i.e. the entity that produces the most blocks.

The τ-decentralization index represents the minimum number of entities that collectively control more than a fraction τ of the total resources (in this case more than 66% of mining / staking power).