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The University of Edinburgh and Input Output Global (IOG), the builder of the Cardano network, have teamed up to create a blockchain decentralization index, IOG\u00a0announced<\/a> on its blog. The new service is the first of its kind and will use a \u201cresearch-based\u201d methodology developed at the university.\u00a0<\/p>\n The Edinburgh Decentralization Index (EDI) has been in development for several months and was introduced in Edinburgh on Nov. 18, but it is not yet operational, according<\/a> to IOG:<\/p>\n \u201cThe first step for the tracker is the creation of research papers detailing decentralization metrics and a considered methodology for compiling them into an index, created by researchers at the University of Edinburgh. It will then operate in the same way as other industry indexes.\u201d<\/p><\/blockquote>\n When launched, the EDI will provide live tracking of assets \u201cunderpinned by a continuously calculated and reviewed methodology.\u201d<\/p>\n Related: Blockchain firms fund university research hubs to advance growth<\/a><\/em><\/strong><\/p>\n There are currently no standards for the decentralization of digital assets. \u201cWhat we\u2019re currently missing is universally accepted industry standards which define to what extent projects are decentralized. The EDI will allow us to ensure that users have full transparency around what they are participating in,\u201d IOG CEO Charles Hoskinson said in the blog post. Hoskinson was alluding to the fact that users currently have no way to judge to what extent digital assets are decentralized.\u00a0<\/p>\n Presentation of the Edinburgh Decentralization Index by @sol3gga<\/a> et al.<\/p>\n It measures decentralization of blockchain networks beyond counting the number of validators and their power (weight) over the system (consensus protocol).<\/p>\n This is a major leap forward for our industry pic.twitter.com\/SJBe5OGpF3<\/a><\/p>\n \u2014 Romain Pellerin (@rom1_pellerin) November 18, 2022<\/a><\/p><\/blockquote>\n Although decentralization by itself is no guarantee of quality, the dismal performance of centralized crypto asset platforms in recent months has kindled new concern<\/a> about it. \u201cThe establishment wants controlled crypto,\u201d tweeted<\/a> Balaji Srivasan, former executive at Coinbase and Andreesen Horowitz. \u201cHad FTX won, they\u2019d control through centralization. With FTX lost, they want control through regulation. At no point was the goal consumer protection.\u201d <\/p>\n Kadena CEO Stuart Popejoy had a similar but more moderate outlook. \u201cCeFi is a \u2018necessary evil\u2019 today, and maybe it will always have its role in crypto,\u201d he tweeted<\/a>. \u201cThe answer is to return to the roots of #blockchain<\/a>: decentralization & transparency. And while DeFi might look like the obvious solution, it still can’t replace CeFi, for reasons obvious and not-so-obvious. The core problem is scalability.\u201d<\/p>\n In addition, decentralization is central to the determination of whether a crypto asset is a security, at least in the United States, where the question is central<\/a> to the future development of regulation. <\/p>\n<\/div>\n\n