Abstract
Decentralization is a unique selling point of blockchain and its applications. However, the novel property has been both theoretically and empirically challenged. This research provides the empirical evidence on centralization in the consensus layer, where mining power is exploited by collusion. Here, collusion refers to certain interactions between blockchain validators and users. Through bribing, validators may execute transactions according to the intention of bribers. We demonstrate the participants of collusion are centralized in a small group, and both users with public names and anonymous users are involved. Potential collusion is correlated with some blockchain-specific factors, e.g., Ether volatility and Tether return. Besides, interlinks exist between collusion and regional stock markets, e.g., Japan and the United States.
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