Try Quests to earn NEARNEAR - 10. The Path to Decentralization
QUESTION
NEAR has expressed its goals to decentralize in 2023. Simply put: are these efforts working?
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Create a stylish, refined dashboard that enables viewers to assess both individual validators on NEAR, and validation as a whole (bonus points if you find a way to enable parameters or dropdowns that display different validators).
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As ever, you are welcome to draw on past/existing work that explores governance on NEAR, as long as you provide credit to your original sources.
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Ensure your dashboard can answer the question: is NEAR becoming more decentralized, or less?
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DECENTRALIZATION
Decentralization means process of shifting control from one main group to several smaller ones. It means that the organization is not concentrated in the hands of few but control is in the hands of many. In blockchain, decentralization refers to the transfer of control and decision-making from a centralized entity to a distributed network.
DECENTRALIZATION IN NEAR
The NEAR Network is now secured by way of a hundred validators. However, the roadmap units out more ambitious goals to decentralize NEAR and hold the community secure.
Chunk-Only Producers is a greater available role for these who may additionally no longer have the NEAR required to run a validator node. This new position will permit the validator node to grow, developing extra possibilities to earn rewards and secure the NEAR Ecosystem.
The meaning of decentralization is transfer of power & authority from one hand to others. In terms of Near it is transfer from one node to other nodes. If the work is equally shared there will be more number of nodes . Active nodes are those who are visible & are active for work atleast one time in a month
The share of amount of distribution is also a major metrics which implies the fair distribution . When decentralization is present then the distribution is even. if decentralization is low than more work is done by a smaller set of nodes .
ANALYSIS
We can see the total number of nodes are 166 in number . From October 2020 to December 2021 we can see that the speed of growth was a slow & constant one . From January 2021, the slope was a gentle one . On 20 January 2021, 10 new nodes joined . % of nodes active in near is very high . 100 nodes are active in Near which is a good number in itself. Average new nodes joining is about 1 everyday ,which is again evenly distributed .The number of Near nodes under the category (more than 10k) is more than all other categories (more than 67%), and the highest number of Near blocks are seen in this category. Low privileged group ,( less than 100k) ,is just 1.79 % & the other two groups are 26% & 3.57% respectively . So we can see & say that Near is a decentralized platform when analyse this platform .
ANALYSIS
We observe that the share of power of top 10 validators are decreasing over time . This proves more decentralization . The share of rank 1-10 validators are 57%, rank 10-25 validators are 28.7% ,which is again a high value, rank 50-100 validators are low with 1.99% .As the high rank validators are maximum we see decision power is in the hands of many . near network is becoming more decentralized .
==ANALYSIS==
On analysis we come to know that, in Near network, staking actions are more than unstaking. The transaction count & volume both are high for staking. Staked transactions are more than 70 % & staked volume is more than 58 % . On August 29, the highest volume staked was 33.57M in a single day .Highest unstake volume was on14th November 2022 with 11.81M . We can see an increasing trend in staking pools whish means more validators on the chain which in turn means, more decentralization.
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ANALYSIS
Highest blocks created was 5.8M by staked.poolv1.near
Initially in 2020,the block size was small less than 50 but after January 2022, it remained at more than 100
with a slight deviation till date.
At the beginning in July 2022 ,nfvalidator1.near , nfvalidator2.near , nfvalidator3.near & nfvalidator4.near were the main producers of the block . after that many new producers came into existence replacing the old ones. In January 2023 ,the highest block producer was yes_protoco1.poolv1.near & staking_yes_protoco1.poolv1.near both with more than 14k count .
In this dashboard we have discussed about the path of decentralization of NEAR . For this we have analyzed various metrics which determine the pattern & degree of decentralization in NEAR . For this we have discussed about nodes as a parameter as we know an increase in nodes indicate more decentralization . Here we can see number of nodes are increasing day by day & the nodes which already existed , maximum of them are active . there is even distribution of work pressure among nodes The meaning of decentralization is transfer of power & authority from one hand to others. In terms of Near it is transfer from one node to other nodes. If the work is equally shared there will be more number of nodes . Active nodes are those who are visible & are active for work atleast one time in a month If decentralization is low than more work is done by a smaller set of nodes .
Highest blocks created was 5.8M by staked.poolv1.near
Initially in 2020,the block size was small less than 50 but after January 2022, it remained at more than 100
with a slight deviation till date.
At the beginning in July 2022 ,nfvalidator1.near , nfvalidator2.near , nfvalidator3.near & nfvalidator4.near were the main producers of the block . after that many new producers came into existence replacing the old ones. In January 2023 ,the highest block producer was yes_protoco1.poolv1.near & staking_yes_protoco1.poolv1.near both with more than 14k count .
The share of amount of distribution is also a major metrics which implies the fair distribution . When decentralization is present then the distribution is even. On analysis we come to know that, in Near network, staking actions are more than unstaking. The transaction count & volume both are high for staking. Staked transactions are more than 70 % & staked volume is more than 58 % . On August 29, the highest volume staked was 33.57M in a single day .Highest unstake volume was on14th November 2022 with 11.81M . We can see an increasing trend in staking pools whish means more validators on the chain which in turn means, more decentralization.
We know when we see an increase in Nakamoto coefficient then there is more decentralization. In case of Near ,we see more decentralization with time . In new year we can observe highest value of Nakamoto so se can state that near is in the path of decentralization .
We observe that the share of power of top 10 validators are decreasing over time . This proves more decentralization . The share of rank 1-10 validators are 57%, rank 10-25 validators are 28.7% ,which is again a high value, rank 50-100 validators are low with 1.99% .As the high rank validators are maximum we see decision power is in the hands of many . near network is becoming more decentralized .
ATLAST WE CAN SAY CLEARLY THAT NEAR IS IN THE PATH OF DECENTRALIZATION