Exploring Correlation Patterns in the Ethereum Validator Network
Simon Brown, Leonardo Bautista-Gomez
TL;DR
This work addresses the limitation of traditional decentralization metrics by introducing a correlation-aware index for Ethereum validators. It combines standard Herfindahl–Hirschman measurements with a correlation factor to capture inter-entity dependencies across node operators, staking pools, clients, and relayers, benchmarked on three Ethereum beacon-node datasets. The findings reveal nontrivial correlations, such as country–ISP ties and client–relayer co-variation, and demonstrate how correlation can amplify or dampen perceived decentralization. The proposed framework offers a practical, longitudinal tool for tracking decentralization dynamics and can inform resilience assessments and policy decisions in evolving decentralized infrastructure.
Abstract
There have been several studies into measuring the level of decentralization in Ethereum through applying various indices to indicate the relative dominance of entities in different domains in the ecosystem. However, these indices do not capture any correlation between those different entities, that could potentially make them the subject of external coercion, or covert collusion. We propose an index that measures the relative dominance of entities based on the application of correlation factors. We posit that this approach produces a more nuanced and accurate index of decentralization.