From 1496f5a8f5021a0665905e6ad9df1f5eb042913b Mon Sep 17 00:00:00 2001 From: bear Date: Thu, 6 Feb 2025 10:37:51 +0800 Subject: [PATCH] Update Nakamoto Coefficient card --- cards/Nakamoto Coefficient.md | 17 ++++++++++++++--- 1 file changed, 14 insertions(+), 3 deletions(-) diff --git a/cards/Nakamoto Coefficient.md b/cards/Nakamoto Coefficient.md index 856903b..8c5e0fa 100644 --- a/cards/Nakamoto Coefficient.md +++ b/cards/Nakamoto Coefficient.md @@ -1,7 +1,18 @@ #explain-card -The Nakamoto Coefficient is a crucial metric for assessing the decentralization of a blockchain network. Named after Satoshi Nakamoto, the pseudonymous creator of Bitcoin, it is defined as the minimum number of nodes that must be compromised to gain control of the network. +The Nakamoto Coefficient is a fundamental metric for evaluating the decentralization of blockchain networks. Named after Bitcoin's pseudonymous creator Satoshi Nakamoto, this metric represents the minimum number of entities that would need to collude to disrupt the network's operations. -A higher Nakamoto Coefficient indicates a more decentralized network. For instance, if a network has a Nakamoto Coefficient of 5, it means that at least 5 nodes would need to be compromised to control the network, censor transactions, or double-spend coins. +A higher Nakamoto Coefficient indicates greater decentralization and network resilience. For example, a coefficient of 7 means at least 7 different entities would need to cooperate to potentially censor transactions or execute a 51% attack. This metric is particularly important for assessing: -To calculate the Nakamoto Coefficient, determine the minimum amount of mining or voting power required to control the network. Then, rank all entities in the network by their mining or voting power and sum the power until you reach the threshold. The number of entities at this point is the Nakamoto Coefficient. \ No newline at end of file +- Proof of Stake networks (by validator stake distribution) +- Proof of Work networks (by mining pool distribution) +- Governance systems (by voting power distribution) + +To calculate the Nakamoto Coefficient: +1. Identify the critical subsystem being measured (mining, validation, governance) +2. Determine the minimum threshold of control needed (typically 33% or 51%) +3. Rank all participants by their share of power/stake +4. Cumulatively add the largest participants until reaching the threshold +5. The number of participants at this point is the Nakamoto Coefficient + +You can explore real-time Nakamoto Coefficient data for various blockchains at [NakaFlow.io](https://nakaflow.io/), which provides up-to-date metrics for supported chains. \ No newline at end of file