The Nuance of Decentralization

The advent of distributed ledger technology (DLT) has resulted in the proliferation of public blockchains. These blockchains, especially the newer ones, often boast high transaction throughput and fast confirmation times. However, not every blockchain markets itself as decentralized and for those that do, it is hard to make an objective statement that a particular network is decentralized because the concept of decentralization is extremely nuanced. 

In this research article, we will look at these nuances, as well as discuss the tradeoffs of decentralization. Before diving into these topics, it is crucial to differentiate the three defining terminologies that will be used: centralized, decentralized, and distributed.