In the evolving world of blockchain technology, the openness of a network is a crucial factor that impacts its security, decentralization, and overall health. A recent study examined eleven major Proof-of-Stake (PoS) blockchains to evaluate their openness, identifying key strengths, weaknesses, and pathways for improvement.
This analysis offers valuable insights for developers, investors, and enthusiasts aiming to understand what makes a PoS network truly accessible and resilient.
What Is Openness in Blockchain?
Openness in blockchain refers to the ease with which anyone can participate in the network as a validator. It measures the accessibility of joining the process of creating and verifying blocks, the level of contribution each participant can make, and the network's reliability against security threats.
While related to decentralization—which focuses on the distribution of control and functions among participants—openness is specifically about barriers to entry and ongoing participation.
Key metrics used to evaluate openness include:
- The number of validators on the network.
- The initial capital required to become a validator.
- The concentration of capital among validators.
- The operational costs of running a validator node.
- Economic stability and security of the network.
Openness Rankings of Major PoS Blockchains
The study assessed eleven leading PoS blockchains, listed below in alphabetical order:
- Algorand
- Aptos
- Avalanche
- BNB Chain
- Celo
- Cosmos Hub
- Ethereum
- Near
- Solana
- Klaytn
- Polygon
Based on the five core metrics, the networks were categorized into groups based on their openness scores.
Highly Open Networks
Blockchains that demonstrated a high degree of openness include:
- Algorand
- Avalanche
- Celo
- Solana
These networks generally feature lower barriers to entry, a higher number of validators, and healthier capital distribution, making them more accessible and robust.
Moderately Open Networks
The following blockchains were found to have a moderate level of openness:
- Cosmos Hub
- Ethereum
- NEAR Protocol
These chains show reasonable accessibility but have areas for improvement, often related to capital requirements or validator concentration.
Networks with Lower Openness
- Aptos and BNB Chain received lower scores, particularly in initial capital cost and decentralization. Their total openness ratings were comparatively low.
- Klaytn and Polygon currently operate with a more permissioned validator model. As a result, their current openness scores are not directly comparable to fully permissionless chains. The study notes that a transition to a permissionless model would require careful balancing to improve openness without compromising on performance or security.
Key Findings and Implications
One of the most significant findings is that permissionless networks with very high capital requirements for validators can exhibit openness levels similar to those of permissioned networks. This suggests that economic barriers can be just as limiting as technical or administrative ones.
For permissioned chains like Klaytn that aim to transition to a permissionless model, several factors are critical:
- Choosing the Right Consensus Model: Deciding whether influence should be proportional to the stake held or the number of validators.
- Setting Participant Requirements: Appropriately defining the number of validators, initial capital costs, and operational expenses.
- Ensuring Economic Health: Managing capital concentration and the staking ratio to circulating supply to maintain network reliability and security.
This strategic balancing act is essential for fostering sustainable growth while ensuring the network remains secure and scalable.
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Frequently Asked Questions
What is the difference between openness and decentralization in blockchain?
Decentralization refers to how evenly control, functions, and information are distributed across a network. Openness, on the other hand, focuses on how easily new participants can join and contribute as validators, considering factors like cost and technical barriers.
Why is validator concentration an important metric?
High validator concentration can lead to centralization of power, increasing the risk of collusion or network attacks. A more distributed validator set enhances security and trust in the network.
Can a blockchain be permissionless but not open?
Yes. If the capital or technical requirements to become a validator are extremely high, the network may be permissionless in theory but not open in practice, as very few participants can afford to join.
What are operating costs for a validator?
Operating costs include expenses related to hardware, energy, maintenance, and software updates required to run a validator node continuously.
How does staking ratio affect network security?
A higher staking ratio—meaning a larger percentage of the total token supply is staked—generally makes the network more secure. It increases the economic cost of attacking the chain, as malicious actors would need to acquire a significant amount of tokens.
Is openness the same for all types of blockchains?
No. Openness is most relevant for Proof-of-Stake and other consensus mechanisms that rely on validators. Proof-of-Work blockchains, for example, are measured more on mining accessibility and hash rate distribution.
Understanding the openness of a blockchain is vital for assessing its long-term viability and democratic potential. Networks that prioritize low barriers to entry, broad validator participation, and economic stability are better positioned for sustainable growth and innovation.
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