Ethereum under the control of 4 companies that can decide what they want, it’s the end of decentralization!

All of that has changed, and most miners have transitioned or are planning to transition to other Ethereum-compatible coins, like Ethereum Classic, ERGO, and the new ETHW fork. Today, Ethereum blocks are verified by validators and there are 429,278 validators. However, a large portion of the 13.7 million ethereum staked is held by four well-known providers.

4 well-known providers hold 59% of the Ethereum staked today.

Lido owned 30% of the Ethereum staked four days ago. On September 15, the Twitter account Checkmatethe leading onchain analyst at Glassnode wrote about which entities currently hold the shares of the largest updates. “We have profiled a few additional entities,” Checkmate wrote to someone discussing Lido holdings. Checkmate said the data shows there are 13.7 million bets. ETH and 10 million Ether are held by well-known vendors. This equates to 73% of the funds staked. ETH and the top four providers hold 8.13 million. ETH or 59.3% of the whole.

4.17M in Lido, 1.92M in Coinbase, 1.14M in Kraken, [et] 0.9M in Binance,” Checkmate said. The tweet shared by Glassnode’s onchain analyst was discussed in more detail by popular bitcoiner Tuur Demeester, the editor of “44% of ETH is staked by only 2 entities, Lido [et] Coinbase. If we add Kraken, we go to 52% of the total. ETH staked by 3 entities“, Demeester wrote. The editor also made fun of a tweet written by Vitalik Buterin that talks about the idea of ​​having the system validated by average users.

SEC Chairman Gensler suggests coin staking needs to be revisited, Jack Dorsey shares anti-PoS op-ed, Ethereum supporters think people are moving too fast.

In addition to bitcoiners like Demeester and Checkmate, US Securities and Exchange Commission Chairman Gary Gensler recently spoke about the Howey test and coin staking. The Wall Street Journal (WSJ) reported that Gensler said: “From the point of view of the coin…this is another clue that, according to the Howey test, the investing public anticipates profits based on the efforts of others.“Although the WSJ said that Gensler pointed out that he was not referring to any particular cryptocurrency, many crypto enthusiasts assumed that the SEC Chairman was discussing ethereum and coins. PoS.

In mid-August, Coinbase co-founder and CEO Brian Armstrong was asked if the exchange would censor at the ethereum protocol level with validators. “If regulators ask you to censor at the ethereum protocol level with your validators, will you: (A) Comply and censor at the ethereum protocol level with your validators?“. [le] protocol level (B) Shut down the staking service and preserve network integrity? “, asked the user.

armstrong replied to three days later and said: “This is a hypothesis that we hope not to be confronted with. But if that were the case, we would opt for (B), I think. You have to focus on the big picture. There may be a better option (C) or a legal challenge that could help achieve a better outcome.

Proof of work proponents question validator censorship as 59% of Ethereum is held by 4 companies.

A number of people think it’s entirely possible that well-known validators will be forced to comply with regulatory policy and censorship. With four centralized entities holding the most ethereum today, people are concerned about whether validators will be centralized and censor transactions. On September 14, Twitter co-founder Jack Dorsey shared a editorial published on which criticizes the PdS.

Meanwhile, most of the criticism comes from bitcoiners, some of whom are labeled as bitcoin maximalists. Ethereum proponents think the idea is nonsense and one commented that it would simply transition to a money exchange system. ETH a chain that does not censor transactions. “Guys,tweeted Ryan Adams, “[le gouvernement américain] don’t try to censor [ethereum] validators right now. Let’s not get carried away. But… if they ever do… I’ll be on the Ethereum fork that doesn’t censor transactions. It’s that simple. Layer 0 is our security layer“, added Adams.

Proof of work proponents question validator censorship as 59% of Ethereum is held by 4 companies.
Images shared by Eric Wall on September 16, 2022. The left image was originally shared by Banteg, and the right image was originally shared by Alex Svanevik.

supporter of bitcoin and bloggerEric Wall, published on a Twitter thread on September 16 that details in the Lido staking case, “Lido is not even a pool“. Wall further remarks in his thread that “Lido cannot decide which blocks each of its underlying node operators operates.“Wall does divulges that he is an investor in LDO, as lido dao (LDO) is the native governance token for the LidoFinance project.

Lido also cannot fire any of its node operators or take away its stake as things stand. No more than 13.1% of Lido validators are based in a single country. The geographical distribution is actually quite impressive“, adds Wall’s Twitter feed.

To display Hide the table of contents

We want to say thanks to the author of this article for this incredible web content

Ethereum under the control of 4 companies that can decide what they want, it’s the end of decentralization!

You can find our social media profiles , as well as the other related pages