Unstoppable Finance claims that Solana’s number of validators and the Nakamoto ratio are higher than other blockchains, making it more decentralized.
Unstoppable Finance, a Solana-based decentralized finance (DeFi) company, claims that Solana is more decentralized than people think. However, there is another side that believes that the blockchain platform is actually more centralized.
In a blog post, the DeFi firm lays out its case, citing the number of active validators on the blockchain network, the Nakamoto ratio, and often-cited expensive validator hardware support as reasons for decentralizing the network.
According to the post, the number of Solana validators is much higher than most other networks except Ethereum. In addition, Unstoppable Finance notes that Solana’s Nakamoto Ratio, a metric that measures token distribution and decentralization, is much higher than protocols such as Cosmos and Near Protocol.
Number of Solana validators compared to other networks. Source: Ultimate (from Unstoppable Finance)
Regarding the criticism that Solana’s validation equipment is expensive, Unstoppable Finance claims that Solana has already created a server rental program to address this issue. Despite Solana’s arguments in favor of decentralization, some members of the community are still not convinced that the platform is decentralized.
Twitter user Les_teezy believes that Solana’s network outages are not the main problem; On the contrary, the network is “too centralized”, which gives only a few the opportunity to shut down and restart the network. A Twitter user emphasized that without decentralization, the network is no different from any traditional system.
Related: What decentralization? Solana Lender Solend Endorses Whale Exchange Takeover to Avoid DeFi Explosion
A month ago, a Reddit user posing as a software developer called Solana a scam and compared it to a SQL database implemented by traditional financial institutions. Redditor wrote that when a centralized group can reset the ledger, it’s similar to centralized financial firms.
In June, Solend, a lending protocol based in Solana, took a controversial step to take over the whale’s wallet to avoid liquidation. This move provoked strong public opposition. Eventually, the team backed off and focused on other solutions that didn’t require the wallet to be taken over.