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2/8/2025 10:41:15 AM (GMT+1)

How to avoid centralization in decentralized networks?

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In recent years, decentralized networks like blockchain have attracted attention due to their promises of autonomy and resistance to manipulation. However, with the rise in popularity of such technologies, the threat of centralization emerges, which could negate these advantages. So, how can we avoid this?

1. **Encouraging participation**: It's important for participation in the network to remain accessible to everyone. Protocols that use mining or staking should provide opportunities for minimal investment and ensure equal conditions for all users.

2. **Validator diversity**: Networks should aim for a large number of independent validators. Centralization in the hands of a few large players undermines decentralization. For example, projects like Polkadot are actively working on improving decentralized validator models.

3. **Ensuring decentralized governance**: DAOs (decentralized autonomous organizations) allow control in the network to be distributed among all participants, which reduces the risk of centralizing power in the hands of small groups.

4. **Openness to innovations**: Supporting new technologies and tools, like Layer 2 solutions or cross-network interactions, can reduce the risk of power concentration and create more resilient systems.

To prevent centralization, it's essential that technologies develop towards accessibility and transparency, preserving the freedom and autonomy of users, fostering trust, and democratizing blockchain networks.


This material was prepared by Khachatur Davtyan, developed and translated by artificial intelligence.



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