Input Output Global (IOG), the builder of the decentralized finance (Defi) cryptocurrency Projet Cardano (ADA), has unveiled the world’s first blockchain decentralization index.
The tool, dubbed the Edinburgh Decentralization Index (EDI), is a partnership between IOG and the University of Edinburgh that aims to establish a transparent mechanism for rating the decentralization level of public blockchain initiatives, IOG gesot in a blog post published on November 18.
Notably, the EDI will work as a live tracker backed by continued ‘calculated and reviewed methodology’ under the supervision of a team from the University of Edinburgh.
How the EDI works
In establishing a project’s decentralization level, the EDI will reportedly focus on risk factors associated with the crypto space. According to IOG, the decentralization review process seeks to consider crypto market volatility and innovations in the blockchain space.
According to Cardano founder Charles Hoskinson, establishing the index is part of an initiative aimed at empowering users and investors,
“Decentralization is at the heart of what makes blockchain Technik so unique and so potentially revolutionary. By decentralizing a system, we’re putting power back into the hands of everyday users and investors. What we’re currently missing is universally accepted industry standards which define to what extent projects are decentralized,” said Hoskinson.
In the end, the EDI seeks to preserve the principles of blockchain technology, promoting transparency, censorship, resilience, and integrity as benefits of decentralization.
Over the years, most projects launched in the crypto sector have been marketed as decentralized with no specific industry measure. In this case, IOG stated that the EDI could lay the groundwork for classifying cryptocurrency projects.
Hoskinson’s frustrations
At the same time, as per a Finbold Rapport, Hoskinson expressed his frustration on projects rated as decentralized, yet they carry centralization principles.
"Ech sinn midd an enger Industrie ze sinn wou all eenzel Persoun seet; mir sinn dezentraliséiert. Wat heescht dat? Mir hu kee Wee fir ze moossen. Et ass wéi ze soen datt mir performant sinn. <...> Dës si just puffy. Dëst si just Wierder. De Problem ass datt Dezentraliséierung eng Miessung vun der Widderstandsfäegkeet ass. Et ass eng Messung vu Kontroll. Et ass eng Miessung vun der Zouverlässegkeet, an et ass op der Manéier wéi d'Protokoller entworf sinn, "sot hien.
In this case, Hoskinson noted that decentralized projects should be rated on metrics guided by resilience, control, and reliability.
Source: https://finbold.com/cardano-builder-iog-university-of-edinburgh-launch-worlds-first-blockchain-decentralization-index/