How does Cardano solve decentralization?
One of Cardano’s primary reasons for existing is to bring fairness and access to financial services to everyone, including the world’s poorest people. To do that properly, in a way that can’t be manipulated by powerful people, companies or governments, it had to get decentralization right, from the outset. That’s why a lot of people think of it as “The People’s Blockchain” – it’s a true Web3 blockchain that isn’t owned or controlled by powerful corporations. It’s taken a lot of time to do it, but today it stands as by far the best leading blockchain in terms of its decentralization credentials (with even better to come as it continues to build out its full capabilities).
Here are some of the key reasons Cardano has become the most decentralized leading blockchain:
Large number of stake pools
Its design encourages people to create lots of independent “stake pools” – these are the individual computers that make up the whole blockchain. The more you have, the more decentralized it is and the harder it is for someone to ever take control of it.
Fair coin distribution
Unlike a lot of blockchains, when Cardano was created they released the majority of its ADA cryptocurrency coins to the public to buy. Disproportionate quantities weren’t kept back for themselves or investors. It has much better decentralization as a result.
Cardano has spent years fostering its community of developers and supporters. Today it stands hundreds of thousands of people strong, soon to be millions. People who look into Cardano seem to want to stick around…
The entire Cardano blockchain, all of its software, is released under open source licencing, for anyone to inspect it and even re-use it if they wish.
Governance baked in
Governance means the tools built in that allow a decentralized blockchain to have its community make all of the decisions on its operation and how its future development will happen.
Make the world better and fairer
It’s Cardano’s whole purpose and is why it has strived to be the most decentralized blockchain. The motivation for everyone to take part, the poorest as well as the richest, to help run the blockchain and help decide its future is the same. It’s a fair and equal system, from the bottom all the way up to the top.