1/16) What is decentralization & how do we really measure it?
We will rate BTC, ETH, XRP, SOL, TRX & ADA in this thread
The results will surprise, as we rate ADA the highest! With BTC & XRP scoring lowest!
Methodology is key, as objective analysis defeats the crypto cults! 🧵

Twitter

The release of this new regulation marks a historic leap in the attitude of Chinese regulators towards virtual assets, shifting from a "complete ban" to a "combination of restriction and guidance."

Article Author & Source: Guofeng Law Firm On February 6, 2026, the "Notice on Further Preventing and Handling Risks Related to Virtual Currencies" (Yinfa [2026] No. 42, hereinafter referred to as "Document No. 42"), jointly issued by eight ministries led by the People's Bank of China, and the "Regulatory Guidelines on the Issuance of Asset-Backed Securities Tokens Overseas by Domestic Assets" (hereinafter referred to as the "Guidelines") simultaneously issued by the China Securities Regulatory Commission, have triggered significant reactions in the legal and financial circles...

Breaking News! The Year of China's RWA: A Compliant Channel Opens for Trillions of Yuan in Domestic Assets to Go Global

BitMEX co-founder Arthur Hayes wrote that the recent Bitcoin crash may stem from traders' concerns about IBIT (BlackRock) […]
The article, "Arthur Hayes Speculates on BTC Crash Cause: 'Institutional Hedging Operations': IBIT Options Explode $900 Million," was originally published on BlockTempo, the most influential blockchain ABMedia media.

Arthur Hayes speculates that the reason for the BTC crash is "institutional hedging operations": IBIT options saw a surge of $900 million.

Unusual trading in BlackRock’s bitcoin ETF, iShares Bitcoin Trust (IBIT), has led traders to speculate that this week’s sharp Bitcoin drop may have been triggered by one or more Hong Kong–based hedge ...

Bitcoin Selloff Sparks Hedge Fund Speculation Around BlackRock ETF

2/16) 1. Validator distribution
Counting the number of nodes is meaningless, as there is no Sybil protection against node spam
What does matter is the distribution of unique validators (nodes involved in block production)
As they have skin in the game, whether PoW or PoS!

3/16) 2. Client distribution
Using an analogy borrowed from democracies:
A blockchain network with a single client implementation is equivalent to a one-party system!
A single client implementation can act as a gatekeeper to all change; this is how BTC was effectively captured

7/16) 6. Political decentralization
The power of influence is an unavoidable aspect of human nature
Political analysis is needed to map influence & factions
Technically decentralized chains are still centralized if a founder's cult of personality dominates politically!

8/16) Measuring BTC decentralization:
1. 3/10; low validator count (mining pools)
2. 1/10; Core dominates!
3. 10/10; No permissioned elements
4. 4/10; PoW, No native delegation
5. 0/10; No on-chain governance
6. 2/10; Knots was defeated!
BTC's decentralization score: 20/60

13/16) Measuring ADA decentralization:
1. 8/10; High validator count
2. 8/10; Diverse client ecosystem
3. 10/10; No permissioned elements
4. 8/10; Native delegation
5. 9/10; On-chain governance!
6. 3/10; Little pushback to IOHK & Charles cult
ADA decentralization score: 46/60

14/16) This model for measuring decentralization is extremely simplified
Within @cybercapital research, we use over fifty parameters to get a decentralization point score while also weighting factors separately
However, even this simple & flawed model cuts through so much BS!

15/16) Even though much shorthand was used for this model (character limits)
A more sophisticated model would weigh these differently, though
ADA coming out ahead was surprising, but it makes sense
Going from 3k to 5k nodes does not make up for the lack of on-chain governance

16/16) Even with the disclaimers, this will upset many
As they are invested in the illusion of perfect decentralization
When in reality, decentralization is a multi-faceted spectrum where no chain prevails in all aspects
If you are serious about decentralization, measure it!