Is Ethereum More Decentralized Than Bitcoin?

Vitalik Buterin recently spoke at the ETHCC conference in Brussels about Ethereum's decentralization compared to Bitcoin and other blockchain systems.

He argued that Ethereum’s decentralization is stronger, citing that Bitcoin’s mining power is heavily concentrated among a few pools. For example, just two pools control 50% of Bitcoin’s mining power, while four pools control 75%.

In contrast, Ethereum has a more distributed network, with many individual stakers and validators. Buterin highlighted that the Lido staking pool includes 37 different validators, contributing to Ethereum’s decentralization.

He noted that Ethereum’s multi-client and multi-validator environment enhances its overall robustness.

Ethereum’s shift to Proof-of-Stake (PoS) after the Merge aimed to reduce energy consumption by replacing miners with stakers. However, critics have raised concerns about centralization due to the 32 ETH staking requirement.

Buterin acknowledged these concerns and suggested that lowering the staking threshold could potentially increase the number of validators and improve decentralization.

Buterin also discussed the concept of blockchains as “truth machines,” emphasizing their role in ensuring transparency and consistency in digital messaging.