Decentralization in PoS Blockchain Consensus: Quantification and Advancement

• URL: http://arxiv.org/abs/2504.14351v1
• Date: Sat, 19 Apr 2025 16:33:30 GMT
• Title: Decentralization in PoS Blockchain Consensus: Quantification and Advancement
• Authors: Shashank Motepalli, Hans-Arno Jacobsen,
• Abstract summary: This study quantifies the decentralization of consensus mechanisms in proof-of-stake (PoS) blockchains.<n>We introduce two alternative weighting models for PoS consensus: Square Root Stake Weight (SRSW) and Logarithmic Stake Weight (LSW)<n>Results demonstrate that SRSW and LSW models improve decentralization metrics by an average of 51% and 132%, respectively.
• Score: 10.679753825744964
• License: http://creativecommons.org/licenses/by/4.0/
• Abstract: Decentralization is a foundational principle of permissionless blockchains, with consensus mechanisms serving a critical role in its realization. This study quantifies the decentralization of consensus mechanisms in proof-of-stake (PoS) blockchains using a comprehensive set of metrics, including Nakamoto coefficients, Gini, Herfindahl Hirschman Index (HHI), Shapley values, and Zipfs coefficient. Our empirical analysis across ten prominent blockchains reveals significant concentration of stake among a few validators, posing challenges to fair consensus. To address this, we introduce two alternative weighting models for PoS consensus: Square Root Stake Weight (SRSW) and Logarithmic Stake Weight (LSW), which adjust validator influence through non-linear transformations. Results demonstrate that SRSW and LSW models improve decentralization metrics by an average of 51% and 132%, respectively, supporting more equitable and resilient blockchain systems.

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