Is Ethereum Truly Decentralized?
Ethereum is a Proof of Work coin that migrates to a Proof of Stake coin. The migration leaves some problems with the decentralization of the coin. The number of staked coins has an important role in the validation transaction.
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An account on twitter @maggie_love posted in the tweet.
The Ethereum merge has left a lot of questions for its fans. Will ETH still be decentralized?
Most of the validators on the Beacon Chain are large organizations, from famous exchanges to recently created staking providers that have a lot of ETH. A majority of Ethereum’s validators are businesses registered in countries like the U.S and E.U, so they follow those regions’ laws.https://www.cryptopolitan.com/is-the-ethereum-merge-more-centralized/
"Since the successful completion of the Merge, the majority of the blocks — somewhere around 40% or more — have been built by two addresses belonging to Lido and Coinbase. It isn’t ideal to see more than 40% of blocks being settled by two providers, particularly one that is a centralized service provider (Coinbase)," explained Ryan Rasmussen, crypto research analyst at Bitwise.https://cointelegraph.com/news/40-ethereum-pos-nodes-are-controlled-by-two-addresses-says-santiment-data
The validity of a transaction is carried out by miners on POW, but on POS it is carried out by validators. Validators consist of addresses running servers with coins staked at those addresses.
In Ethereum, there are only two addresses that validate transactions. With two addresses owned by large companies, it is very likely that the addresses are subject to censorship. Another thing is that the stakers who run the nodes mostly use paid server services. Amazon and Hetzner hold more than 60% of the nodes in their hardware. It is possible if they use a 51% attack to censor it.
More than 60% of nodes are hosted by Amazon and Hetzer. Two addresses that validate transactions are owned by Coinbase and Lido.
Can it be said that Ethereum is a truly decentralized coin? When a cryptocurrency is able to be controlled by minor entities with high power, it can not be said that the coin is decentralized.