In February 2020, Cardano co-founder and IOHK CEO <a href="https://twitter.com/IOHK_Charles" target="_blank" rel="nofollow noopener">Charles Hoskinson</a> made a bold claim. He stated that Cardano (ADA) would one day become the most decentralized cryptocurrency in the world. Hoskinson believed that upgrades to the Cardano network could make it between 50 and 100 times more decentralized than Bitcoin (BTC).

Hoskinson's assertions are not surprising; Cardano has been a hot topic for a while now. Analysts view it as one of the few digital assets capable of challenging Bitcoin's dominance of the crypto space. Would greater decentralization make Cardano more attractive to crypto users? And would it increase ADA's value and influence in the cryptoverse?

To answer these questions let's do a Cardano vs Bitcoin comparison with regard to their decentralization. But we first need to understand decentralization and why it is essential in crypto.
<h2><strong>What Is Decentralization?</strong></h2>
Simply put, <a href="https://www.cryptoknowmics.com/news/decentralization-in-blockchain-what-is-it-why-it-matters">decentralization</a> means moving control and decision-making from a central entity to a distributed network. Decentralization brings inclusivity, transparency, security, and greater control of information or assets. It also provides a trustless environment, improves data reconciliation, reduces points of weakness in a system, and optimizes the distribution of resources. In a nutshell, the more decentralized a crypto network is, the better it is.
<h2><strong>Is Cardano More Decentralized Than Bitcoin?</strong></h2>
Many industry observers have echoed Charles Hoskinson's assertion that Cardano will be more decentralized than BTC. Below, we will take a look at <strong>Cardano vs Bitcoin</strong> to understand why they believe this to be so:
<h3><strong>Completely Decentralized Block Production</strong></h3>
As far as block production is concerned, Cardano and Bitcoin are vastly different. The Bitcoin blockchain is primarily controlled by the ten biggest BTC mining pools. These mining pools account for approximately 85 percent of all block production on the network.

In contrast to Bitcoin, Cardano is not controlled by a handful of groups. Instead, the network's entire community, comprising of 2,200 stake pool operators, is exclusively responsible for 100 percent of all block production.

Spreading block production across a large number of people or pools increases the security of a <a href="https://www.cryptoknowmics.com/news/5ire-raises-100m-to-fund-expansion-of-sustainable-blockchain/">blockchain</a> or crypto because it lessens the possibility of a 51 percent attack on the network.
<h3><strong>Stake Saturation Point</strong></h3>
Decentralization on Cardano is further enhanced by a mechanism known as the stake pool saturation point. On the Cardano network, each stake pool is only allowed to be a specific size. Once that size limit is reached, staking rewards become fixed, making the pools less lucrative. This is the stake pool saturation point.

For decentralization to be truly effective, the number of stake pools or mining pools must be as high as possible. The saturation point for stake pools is meant to make sure that transactions on the Cardano network are not controlled by a small number of large stake pools but rather by a large number of smaller ones.
<h3><strong>Governance</strong></h3>
While some blockchain systems have integrated formal governance processes, including voting for proposals or electing leaders, bitcoin has nothing of the sort. Bitcoin does not rely on on-chain mechanisms to handle governance issues. Instead, it uses off-chain dynamics and interactions of its users, especially a tiny niche of developers and miners.

On the other hand, Cardano is working on an $80 million fund dubbed <a href="https://www.cryptoknowmics.com/news/cardano-invites-voters-for-fifth-round-of-project-catalyst">Project Catalyst</a>, which is an attempt to make its community more involved in the governance of the network. Project Catalyst is wholly funded by the Cardano community and aims to turn their ideas and proposals into innovative and impactful real-world projects.
<h3><strong>Decentralization Timeframes</strong></h3>
Another pointer to Cardano's eventually being more decentralized than Bitcoin is the roadmaps, or lack thereof, highlighting the networks' plans. The Cardano roadmap divides the future of the network into several important phases or eras, with decentralization and access at the heart of each one.

For example, Cardano users in the <a href="https://www.cryptoknowmics.com/news/cardano-iohk-to-launch-goguen-for-creating-new-value-in-community">Goguen era</a> should be able to build decentralized applications (DApps) and create fully functional smart contracts, even if they don't have a technical background. The Basho era is expected to improve the scalability and interoperability of the Cardano network.

Finally, the Voltaire era will introduce a voting system where Cardano users will be able to leverage their stake and vote to shape the future of the network. Also, a treasury system will be set up where a small portion of all transaction fees will be pooled to pay for changes that the community votes on.

On the other hand, Bitcoin has yet to share such detailed plans for its future. Upgrades on the network are made on a need basis. This implies that, unless it is felt along the way that the network might need a bit more decentralization, it will most probably stay the same.
<h2><strong>Conclusion</strong></h2>
Cardano vs Bitcoin comparison signifies that both crypto networks have strong decentralization points. But Cardano already has an advantage over Bitcoin because it does better on some decentralization measures.

And looking at their plans, Cardano has a much clearer roadmap for decentralization. Because of this, it may very well become the more decentralized of the two blockchains in the future.

Cardano vs Bitcoin l Which Is a More Decentralized Crypto Network?

Analysts view Cardano as capable of challenging the dominance of Bitcoin. Would greater decentralization make Cardano more attractive? Let us find out.

Adam is an outgoing young lad who likes adventures and discovering new things.Despite his boring life, he loves writing about cryptocurrencies and exploring what blockchain technology can do for the coming digital world where all adventures will be virtual.

Cardano vs Bitcoin l Which Is a More Decentralized Crypto Network?

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