Decentralization in ICP

Summary

As a blockchain protocol, decentralization is very important to the design and implementation of ICP. This article explains the design intent and the current state of the world when it comes to ICP decentralization.

What is Decentralization

In the context of blockchains, “decentralization” is defined by Wikipedia as:

“Decentralization [in blockchains] refers to the transfer of control and decision-making from a centralized entity (individual, organization, or group thereof) to a distributed network. Decentralized networks strive to reduce the level of trust that participants must place in one another, and deter their ability to exert authority or control over one another in ways that degrade the functionality of the network.”

All blockchains rely on a consensus protocol to come to agreement on the state of the network. The higher the decentralization of a network, the more individual actors that need to coordinate to come to an agreement. In a centralized or low-decentralization system, one or a handful of entities would be sufficient to establish the state of the system.

Vitalik Buterin described decentralization to be composed three independent axis:

1. “Architectural (de)centralization — how many physical computers is a system made up of? How many of those computers can it tolerate breaking down at any single time?

2. Political (de)centralization — how many individuals or organizations ultimately control the computers that the system is made up of?

3. Logical (de)centralization — does the interface and data structures that the system presents and maintains look more like a single monolithic object, or an amorphous swarm? One simple heuristic is: if you cut the system in half, including both providers and users, will both halves continue to fully operate as independent units?”

Buterin described blockchains as being architecturally decentralized (many computers), politically decentralized (many entities), but logically centralized (typically, one consensus protocol).

This article focuses on the architectural and political decentralization of ICP.