Input Output Global (IOG), the organization behind the Cardano network, has teamed up with the University of Edinburgh, a highly-rated university in the United Kingdom, to build a first of its kind ‘decentralization index.’
According to a blog post published by IOG, the Edinburgh Decentralization Index (EDI) will “produce a framework that consistently determines the ‘decentralization’ level of public blockchain projects” using research-based methodologies.
Blockchain projects are often criticized for high levels of centralization. The index will help bring transparency and also protect against centralized control of funds.
“The EDI will be a live tracker underpinned by a continuously calculated and reviewed methodology, with calculations being carried out by a team at the University of Edinburgh,” wrote IOG in the blog post. “Through this, people interested in the crypto market can gain a greater understanding of how decentralized projects are and the risk factors associated with them.”
Several metrics, such as hardware, software, network, consensus, tokenomics, and API, will be compiled and combined to form an index with the help of researchers at the University of Edinburgh.
The EDI will be a continuous process functioning the same way as other indexes like the Bitcoin Electricity Consumption Index, which was developed by the University of Cambridge Judge Business School to track the energy consumed by the Bitcoin blockchain.
IOG recently funded $4.5 million towards a research hub at the University of Edinburgh to foster continuous research in the development of blockchain technology.
The university is also working with IOG on a second lab that focuses on researching Zero-Knowledge Protocol Technology, which helps enhance confidentiality and scalability for blockchains.