Mance is the co-founder and CEO of Hedera Hashgraph, a next-generation distributed ledger technology that claims to possess higher speeds and security guarantees than existing blockchain solutions.
“When we talk about decentralization, I think it’s very important to be specific about what we mean. When talking about layer-one protocols, precisely what is being measured when we talk about decentralization? Two separate categories of decentralization are important: 1) governance and 2) transaction ordering.
First, governance: How many different entities (people or organizations) are involved in making decisions on the product roadmap, pricing of services, payments of rewards and other governance-related decisions? Are these entities all known by name, or can they be anonymous? If they can be anonymous, then there is no way to truly determine how decentralized the governance is because the same anonymous actor may pretend to be multiple different entities. Is there an opportunity for consolidation of voting rights? For example, if voting rights are associated with a governance token, then a single actor can increase their influence by buying or earning additional tokens, which leads to the consolidation of rights and increased centralization.
The Hedera Governing Council model is exceptional among public ledgers. It consists of up to 39 term-limited organizations, chosen to represent a broad range of industries, with member headquarters around the globe, running nodes on six different continents. The council members are all publicly disclosed, minutes of the council meetings are published (and hashed on Hedera using the Hedera Consensus Service