Large Firms Dominate Ethereum Validation After Merger

Large Firms Dominate Ethereum Validation After Merger
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many of the benefits promised by Ethereum merge came to pass, including More than 99% reduction energy use and carbon footprint. But analysts, who raised the alarm about increased centralization prior to the transition, are concerned that relatively few entities currently dominate the proof-of-stake mechanism underlying blockchain.

“[The] “The top 7 entities that control more than 2/3 of the stake to see Tbh is pretty disappointing,” said Martin Köppelmann, co-founder of DeFi platform Gnosis.

Ethereum staking service Lido has released a chart showing more than 27 percent of share-based Ethereum verification, followed by more than 14 percent of crypto exchange Coinbase.

And the final Dune Analytics statement He confirmed that the two biggest stakers of Ethereum are currently Lido with 4.16 million ETH (30.1%) and Coinbase with 2 million ETH (14.5%). The remaining stakers classified as “Other” have 3.65 million ETH (26.5%).

Decentralization is a main purpose crypto and Web3. The fact that Bitcoin is “decentralized enough” is the main reason it remains. outside the plus sign US regulators

Security experts warn that if participation in Ethereum validation becomes too centralized, “51 percent attack“It becomes more than theoretical. Also, although Coinbase CEO Brian Armstrong says so, raiding parties can pressurize them to censor transactions on the blockchain. drought and scenario would encourage his company to exit the betting business.

Different proof of workRequires a significant amount of hardware and energy to profitably mine and maintain a blockchain network. proof of share it depends more on users buying, holding and staking the network’s cryptocurrency in large quantities. Some critics consider the merger a move towards centralization.

Now that Ethereum is based on proof of stake, validators with at least 32 ETH can stake or commit to the network instead of relying on miners. Smaller groups can create stake pools to pool their ETH to become validators or join an exchange that offers staking.

“You shouldn’t bet with an exchange,” he warned in a recent interview with Ethereum core developer Micah Zoltu. decryptt. “It’s hurting the network rather than helping, and right now the ROI is probably not worth it.”

Zoltu recommends users stake their ETH by running their own Ethereum loopWhat Ethereum holders can do on a personal computer. “It can be done by anyone with a good enough computer, electricity and internet,” he said.

Meanwhile, Köppelmann pointed out that the top crypto Bitcoin also has a centralization problem.

“Well, dear Bitcoin fans, it doesn’t get any better at Bitcoin,” he said. tweeted out. “Actually you only need 4 assets to reach >72%.”

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