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How centralized or decentralized is NEAR, really? Choose at least two distinct measures of decentralization that can be explored with on-chain data; clearly define those metrics; and outline how NEAR performs based on those metrics. In your view, is NEAR becoming more centralized or decentralized over time? You are welcome to draw on any past submissions in your work, but ensure you credit and link to the original creator (bonus points if you shout them out on Twitter). Grand Prize submissions will also explore these metrics for at least one other blockchain.
What is NEAR Protocol?
NEAR Protocol is a public Proof-of-Stake (PoS) blockchain that aims to bring DeFi to the masses with low transfer fees and fast transactions.
Its consensus mechanism is Proof-of-Stake and it uses sharding technology to achieve speed and scalability. NEAR also provides a bridge and scaling solution for the Ethereum blockchain. NEAR Protocol uses PoS consensus to secure and validate transactions on the blockchain. Validators earn NEAR Token rewards for producing new blocks in the form of a static inflation rate of about 4.5% each year.
What is Solana ?
Solana is a blockchain platform designed to host decentralized, scalable applications. Solana can process many more transactions per second and charges lower transaction fees than rival blockchains like Ethereum.
Solana uses a proof-of-history consensus mechanism. This algorithm uses timestamps to define the next block in Solana's chain. Most early cryptocurrencies, such as Bitcoin and Litecoin, use a proof-of-work algorithm to define the blocks in their chains.
What is Osmosis?
Osmosis is Layer-1, Proof-of-Stake (PoS) blockchain built using the Cosmos SDK that has optimized its design to be a sandbox for automated market makers (AMMs). The chain enables developers to design and deploy customized AMMs by using its various modules and leveraging Osmosis' on-chain governance system.
Methodology
In this dashboard i will show you how centralized or decentralized is NEAR protocol and compare it with Solana and Osmosis blockchains .
At first we are going to analyze the situation of governance on these blockchains in terms of decentralization and compare them together in terms of staked/unstaked amount, number of validators and their power distribution.
If the power of limited number of validators in a blockchain become too high, the blockchain becomes LESS decentralized because those limited number of validators can make important decisions for the chain. So, We are going to check voting power of validators over time on NEAR and Solana and Osmosis to check their power distribution and realise how decentralized are they.
Moreover, We are going to check the block production activity on these chains. As u know, the more miners/block producers means the more decentralized blockchain.
Sections of this dashboard
- Staking and Delegation
- Block production activity
- Native’s Token Balance of Users
- Distribution of Power Between Validators
Special thanks to
For completing this dashboard i use Flipsidecrypto data and i get helped from these dashboards and elite members .
\n ==alik110== , ==jacktheguy== , ==cristinatinto==
Conclusion
According to all data , information and visualizations we saw in this dashboard we come to these conclusions :
In terms of staking and delegation, Osmosis and Solana evaluation is faster than NEAR since there are more ppl staking and there are more increasing validators on the chains over time.
both NEAR and Osmosis block producers is growing more and more over time. But, the number of block producers on Osmosis is increasing with a higher speed.
on both NEAR and Osmosis, there are more and more block producers joining the block production process over time. on NEAR, there is more equal share of different producers compared to the Osmosis. on Osmosis, the main share of block producing is distributed between limited number of producers and this shows that in this terms, NEAR is more decentralized than Osmosis.
The power of top 10 validators on Osmosis and Near is decreasing over time and this means these 2 blockchains are becoming more decentralized as time goes on, but on Solana, Majority of power is centralized among the top 10 validators.
The share of users (whales) who are holding high amount of $NEAR and $OSMO is decreasing over time. This means that both of these networks are becoming more decentralized over time. the less share of whales = less number of users with high power = more decentralized network.
Thanks for reading .
Twitter tweet of this dashboard :
Credit: Adadriaparcerisas , Pinehearst-1947 , alik110 , jacktheguy , cristinatinto
Based on the above charts, we can see that majority of actions on Osmosis and Near belong to the Stake/Delegate but the share of Unstake actions on Solana is more than Stakes!
Also, We can see the share of staking actions on Osmosis compared to the other actions on this chain is more than other chains.
Moreover, we can see the staking activity on Osmosis is increasing more and more over time but on Solana and Near we can see decreasing trend of stake activity over time.
On the above charts, we can see the increasing number of active validators on all 3 chains over time. This means, all of these blockchains are becoming more decentralized over time.
But, we can see the evaluation of Solana in this terms is way faster than other 2 blockchains.
Recently on Osmosis, there were some passed proposals in an effort to promote decentralization within the ecosystem. you can see a full analysis of these proposals and the change of validators voting power on Flipside’s dashboard.
Based on the above charts, both NEAR and Osmosis block producers is growing more and more over time. But, we can see the number of block producers on Osmosis is increasing with a higher speed.
On the second 2 charts, we can see how the process of block producing on these chains is distributed among block producers. As we see, there are more and more block producers joining the process over time. on NEAR, we can see there is more equal share of different producers compared to the Osmosis. on Osmosis, the main share of block producing is distributed between limited number of producers and this shows that in this terms, NEAR is more decentralized than Osmosis.
According to the above charts, on both chains, the share of users (whales) who are holding high amount of tokens ($NEAR and $OSMO) on these 2 chains is decreasing over time. This means that both of these networks are becoming more decentralized over time. the less share of whales = less number of users with high power = more decentralized network.