The Nakamoto coefficient is a metric that assesses the decentralization of mining in the Bitcoin network by determining the minimum number of the largest mining pools that together can control 50% of the hash rate (computing power). Named after Satoshi Nakamoto, the creator of Bitcoin, this metric reflects the risk of centralization that could threaten the security of the network, for example, by organizing a 51% attack.
To calculate the Nakamoto coefficient, you need to:
1. Gather data on the current distribution of hash rate among mining pools (for example, from sites like Blockchain.com or Bitinfocharts).
2. Sort the pools in descending order of their hash rate share.
3. Add pool shares starting from the largest until the sum exceeds 50%.
4. The number of pools needed to reach this threshold is the Nakamoto coefficient.
For example, if the three largest pools control 20%, 18%, and 15% of the hash rate, their sum (53%) exceeds 50%, so the coefficient equals 3. The higher the indicator, the more decentralized the network is. As of August 2025, this indicator fluctuates depending on the activity of the pools.
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