A Proper Test for Decentralization

The primary purpose of decentralizing a protocol is to afford its users self-sovereignty.

Decentralized protocols have the attributes of fault tolerance and resilience, attack resistance and transparency, and collusion resistance. Web3 is the internet of value driven by these protocols, whose primary goal is to use these attributes to ensure operational integrity and to secure transacted and stored value.

Consequently, we may define decentralized protocols as follows:

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QUESTIONS

35

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COMPLETION TIME

20 mins

A distributed, permissionless, non-jurisdictional protocol that serves as infrastructure to manage value, help build an ecosystem, and afford its users self-sovereignty.

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See if a protocol or project is a decentralized protocol

A protocol that meets the above definition affords the user self-sovereignty when using it,
without which the protocol cannot be considered decentralized.
Read the high-level and in-depth supporting blogs for more background on the process.

  • Part One: Three Attributes Framework

  • Front-end layer

  • Smart contract layer

  • Data layer

  • Settlement layer

  • Part Two: Self-Sovereignty Framework

  • Political Decentralization

  • Administrative Decentralization

  • Economic Decentralization

Front-End Layer (UI)

Data Layer

Smart Contract Layer

A Smart Contract layer generally has the following components:

Settlement Layer