Ethereum May Now Be More Vulnerable to Censorship — Blockchain Analyst
As Ethereum validators are required to stake 32 ETH, Ethereum could become more centralized and susceptible to censorship by governments.
Interview
Upgrading Ethereum to proof-of-stake (PoS) could make it more vulnerable to government intervention and censorship, according to lead investigator Merkle Science.
Speaking to Cointelegraph after the Ethereum merger, Coby Morgan, a former FBI analyst, and lead investigator for crypto compliance and forensic firm Merkle Science expressed his thoughts on some of the risks posed by the transition from Ethereum to PoS.
While centralization issues were widely discussed before The Merge, Moran suggested that the prohibitive cost of becoming a validator could lead to the consolidation of validating nodes to larger crypto firms like Binance, Coinbase, and Kraken.
In order to become a full validator for the Ethereum network, one needs to stake 32 Ether (ETH), which is worth around $47,000 at the time of writing.
A pre-merger report from Nansen's blockchain analytics platform earlier this month found that 64% of staked ETH is controlled by just five entities.
Source : NansenMorgan continued to say that these large institutions will be "subject to the whims of governments around the world", and when validating nodes identify sanctioned addresses, they may "be reduced in rewards and then finally launched the system”, with businesses being blocked from interacting with them.
Either you will comply and siphon off this kind of interaction […] or you run the risk of being fined, checked,...
As Ethereum validators are required to stake 32 ETH, Ethereum could become more centralized and susceptible to censorship by governments.
Interview
Upgrading Ethereum to proof-of-stake (PoS) could make it more vulnerable to government intervention and censorship, according to lead investigator Merkle Science.
Speaking to Cointelegraph after the Ethereum merger, Coby Morgan, a former FBI analyst, and lead investigator for crypto compliance and forensic firm Merkle Science expressed his thoughts on some of the risks posed by the transition from Ethereum to PoS.
While centralization issues were widely discussed before The Merge, Moran suggested that the prohibitive cost of becoming a validator could lead to the consolidation of validating nodes to larger crypto firms like Binance, Coinbase, and Kraken.
In order to become a full validator for the Ethereum network, one needs to stake 32 Ether (ETH), which is worth around $47,000 at the time of writing.
A pre-merger report from Nansen's blockchain analytics platform earlier this month found that 64% of staked ETH is controlled by just five entities.
Source : NansenMorgan continued to say that these large institutions will be "subject to the whims of governments around the world", and when validating nodes identify sanctioned addresses, they may "be reduced in rewards and then finally launched the system”, with businesses being blocked from interacting with them.
Either you will comply and siphon off this kind of interaction […] or you run the risk of being fined, checked,...
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