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Cardano builder allies with Edinburgh Uni on decentralisation index


Following last week’s highly publicised collapse of crypto exchange FTX, this week Cardano builder IOG and the University of Edinburgh have joined forces to create the first-ever index for decentralisation in an effort to bring true transparency to the industry and protect users.

Named the Edinburgh Decentralization Index (EDI) it brings a research-based methodology to demonstrate the true level of decentralisation available to public blockchain projects.

The nascent industry is still reeling following events from last week which saw centralised exchange FTX go bankrupt, jeopardising the investment of hundreds of thousands of its customers globally, and plunging the cryptocurrency market into freefall.

Charles Hoskinson, CEO of IOG, speaking about the EDI launch said: “Decentralisation is at the heart of what makes blockchain technology so unique and so potentially revolutionary. By decentralising a system, we’re putting power back into the hands of everyday users and investors. What we’re currently missing [are] universally accepted industry standards which define to what extent projects are decentralised and the EDI will allow us to ensure users have full transparency around what they are participating in.”

Input Output Global, Inc. (IOG), the builder of the proof of stake blockchain, Cardano, has partnered with the University of Edinburgh, one of the most highly rated academic institutions in the United Kingdom, to launch the blockchain industry’s first ‘decentralisation index’.

The Edinburgh Decentralization Index (EDI) will be based on a methodology developed by academics, will be the first of its kind and calculated continuously in line with the evolving blockchain market. EDI could protect users against a lack of transparency around the centralisation of blockchain projects.

Research-based methodology on public blockchain projects

The EDI aims to create more transparency by using a research-based methodology to produce a framework that fairly and consistently determines the ‘decentralisation’ level of public blockchain projects. Protecting against high levels of centralisation aligns with the core principles of blockchain and can safeguard against events such as when a centralised control of funds means end users can’t withdraw their investments.

The first step for the tracker will be the creation of research papers detailing decentralisation metrics and a considered methodology for compiling them into an index, created by researchers at the University of Edinburgh.

Risk radar for blockchain users

The EDI could also promote the preservation of some of the unique capabilities of blockchain, such as transparency, censorship, resilience, and integrity, which all rely on decentralisation. It could also inform users about potential risks, such as how concentrating all information in one place creates a single point of vulnerability, whereas decentralised systems reduce this risk by spreading out information among many blockchain participants, thereby mitigating information asymmetries.

This launch builds on IOG’s commitment to grounding its projects in scientific research. The launch also accompanies a $4.5 million donation to Edinburgh University, as well as the launch of a Zero Knowledge Lab, which will carry out vital research into the safeguarding of personal information.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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