Ethereum might be facing some problems with German cloud provider Hetzner, which runs 16% of the Ethereum mainnet, CoinDesk reports, citing a Reddit post published earlier this week.
Once the world’s largest blockchain network moves to proof-of-stake (PoS), it would violate the web host’s TOS.
If you want to read more about Ethereum and a possible ban from the German web host Hetzner, and to find the latest business headlines in the world, download for free the Born2Invest mobile app.
The reason for the possible ejection is the fact that Hetzner’s T&Cs prohibit staking and mining. The Ethereum team has been planning to make a number of changes to the way the blockchain works for a while now as part of the Ethereum merger.
As a PoS network, staking will be an important part of verifying transactions. After that, users will no longer be paid for mining, but for staking, which is when they deposit their Ether coins into crypto accounts.
A Hetzner employee wrote on Reddit: “Using our products for any application even remotely related to mining is not allowed. This also applies to Ethereum. It includes proof-of-stake and proof-of-work and related applications. It includes trading.”
The consequences for Ethereum
If Ethereum is no longer allowed to be hosted by Hetzner, it would raise questions about the true level of decentralization of the blockchain. According to Ethernodes.org, cloud service providers host nearly two-thirds of Ethereum nodes that process network transactions.
Hetzner is second only to Amazon Web Services. The latter web host operates about 53% of all Ethereum nodes. It is not known if Hetzner has ever taken any action to enforce its ban, or since when it has been in effect.
Hetzner’s post came in response to a tweet from the founder of Web3 infrastructure platform W3bCloud, Maggie Love. She asked: “Ethereum can’t be decentralized if the stack isn’t. Where is the dialogue on this topic?”
Issues with Ethereum and Tornado Cash
Hetzner’s statement follows action by the U.S. Treasury Department against those crypto wallets associated with privacy mixer Tornado Cash. The Ethereum-based service allows users to send and receive money anonymously and, to a certain extent, untraceable.
The problems with Tornado Cash have sparked debate in the Ethereum community about whether a company can force network nodes or the infrastructure that powers them to restrict activity to ensure compliance. That could include censoring transactions.
Ethereum will move to PoS next month, which is expected to intensify the debate. While PoS is a greener solution for processing transactions, there are concerns about whether the blockchain will remain decentralized to the same degree after the upgrade to ETH 2.0.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The Real Estate Market in Italian Small Municipalities Increases by 33%
According to data from Crowdfunding Buzz's observatory on real estate crowdfunding, in 2022, to date, real estate crowdfunding has raised...
CaixaResearch Promotes Cutting-Edge Health and Biomedical Research
CaixaResearch promotes cutting-edge research in health and biomedicine. The "la Caixa" Foundation's call for health research supports 33 projects of...
How To Invest and Save For Your Kids
Parents looking to put money aside that will help cover education expenses, consider taking out a savings plan designed for...
How Building Your Personal Brand Can Help You Escape from the Corporate World
Starting a business is always a difficult undertaking, and for many of us, it can be tough to know where...
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 39]
In this week's TopRanked.io affiliate marketing digest, we check out the latest from Google and highlight two coming updates that...
Business2 weeks ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 37]
Business1 week ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 38]
Business1 week ago
World Football Summit: FIFA World Cup Business Opportunities and Beyond
Featured2 weeks ago
Dow Jones and Other Major Market Indexes Were Down this Past Week