Ethereum, the second largest blockchain, is at risk of being kicked out of the cloud network provider that powers roughly 10 percent of the chain. Here are the details…
Ethereum has to leave the cloud provider
Hetzner, a cloud services firm based in Germany, made statements about Ethereum in a Reddit post this week. He stated that their terms of service specifically prohibit crypto mining as well as staking. That’s why he said that Ethereum will soon move to run the Blockchain. “Using our products for any mining-related application, even remotely, is not permitted,” Hetzner wrote. “This affects Ethereum as well. It includes proof-of-stake and pro-of-work and related applications. It includes trade,” he added.
If Ethereum is removed from Hetzner, its location is predicted to shrink. This raises the question of how decentralized the decentralized chain actually is. According to Ethernodes.org, more than 60 percent of Ethereum nodes, which are computers that process transactions on the network, are hosted by cloud service providers. Of these cloud-hosted Ethereum nodes, Hetzner provides roughly 16 percent power. It ranks second after Amazon Web Services, which ranks first with approximately 53 percent.
The firm is investigating how to fix the problem
It is not known how long the ban has been in effect. It’s also unclear whether the firm has taken action to implement it. “We are aware that there are a lot of Ethereum users on Hetzner right now,” Hetzner says in his post. “We internally discuss how we can best solve this problem,” he adds. Hetzner’s statement followed the US Treasury Department’s Tornado Cash decision, which allows users to send and receive money without a clear trace. cryptocoin.comAs we reported, the ministry has sanctioned cryptocurrency addresses related to Tornado Cash.
The Tornado Cash situation has sparked debate in the Ethereum community about how the nodes operating the network or the infrastructure that powers them will move. It is being considered whether these providers will be compelled to censor transactions or otherwise restrict activities in accordance with the sanctions. This discussion is expected to flare up with Merge, which is expected to take place on the 15th of next month.
As it is known, the Ethereum network will enable the transition to the more energy-efficient proof-of-stake (PoS) mechanism. Over the past month, ETH price has benefited from this expectation. But in the last two days, it’s been on the decline overall. Behind the drop is the Jackson Hole speech of Fed Chairman Jerome Powell. After Powell’s speech, many risky asset groups saw depreciation. Bitcoin lost the critical level of $20,000 while ETH fell below $1,500.
