Unstoppable Finance, decentralized finance (DeFi) startup established in Solana, has claimed that the city of Solana is much more decentralized than most people give it credit for being. On the other hand, one school of thought maintains that the blockchain platform is inherently more centralized than decentralized.
The blockchain network’s active validator count, the Nakamoto coefficient, and support for validator hardware, which is frequently argued to be expensive, are cited by the DeFi company in a blog post as reasons for the network’s decentralization. The firm also cites the Nakamoto coefficient for the network’s decentralization.
“Solana’s Active Validator Count, Almost at 2000, is Much Higher Than Other Chains”
According to the post, the number of validators for Solana is far more than that of the vast majority of other chains, except Ethereum. Unstoppable Finance further notes that the Nakamoto coefficient of Solana, which is a parameter that gauges the distribution of staked assets and decentralization, is far higher than that of protocols such as Cosmos and Near Protocol.
Unstoppable Finance contends, in response to claims that Solana’s validator hardware is pricey, that the company has already developed a server rental service that addresses the problem.
Some Community Members Still Don’t Agree
Some members of the Solana community continue to be unconvinced that the platform is truly decentralized, despite the numerous reasons that have been presented in its favor.
According to the user Les teezy on Twitter, Solana’s network disruptions are not the primary issue; rather, the network is “too centralized,” which gives just a select few the power to shut down and restart the network.
The main problem with solana isn't that it breaks, it's that it's too centralized so few have the influence to shut it down and restart later. Without decentralization, it's just another version of the traditional system
— Les_teezy (@les_teez) July 25, 2022
The Twitter user brought to attention that in the absence of decentralization, the network functions the same way as any other conventional system.
A member on Reddit who identified themselves as a software developer labeled Solana a hoax a month ago and compared it to a SQL database that traditional financial institutions use.
The commenter on Reddit suggested that centralized finance organizations are analogous to situations in which a central authority can reverse the changes made to a ledger.
Solend, a lending protocol based on Solana, took a controversial step in June by seizing control of the wallet of a “whale” to prevent liquidations from occurring. The decision was met with significant opposition from the community.
In the end, the group changed its minds and concentrated on finding other solutions that did not involve taking control of the wallet.
At the time of writing, SOL was trading at $ 37.15.
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