{"id":29461,"date":"2022-09-19T02:32:19","date_gmt":"2022-09-19T02:32:19","guid":{"rendered":"http:\/\/egrowonline.com\/?p=29461"},"modified":"2022-09-19T02:32:19","modified_gmt":"2022-09-19T02:32:19","slug":"40-ethereum-pos-nodes-are-controlled-by-2-addresses-says-santiment-data","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=29461","title":{"rendered":"40%+ Ethereum PoS nodes are controlled by 2 addresses says Santiment data"},"content":{"rendered":"


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Analysis from Santiment indicates<\/a> that 46.15% of Ethereum\u2019s PoS nodes are controlled by only two addresses.<\/p>\n

Hours after the Merge, the first address has validated about 188 blocks or 28.97% of the nodes, and the second has validated 16.18%, or 105 blocks. On Twitter, the data became a controversial topic as users debated about the impact of the Merge on centralization for the largest network in the world. <\/p>\n

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According to our #Ethereum<\/a> Post Merge Inflation dashboard, 46.15% of the #proofofstake<\/a> nodes for storing data, processing transactions, and adding new #blockchain<\/a> blocks can be attributed to just two addresses. This heavy dominance by these addresses is something to watch. pic.twitter.com\/KQdFNgGloD<\/a><\/p>\n

\u2014 Santiment (@santimentfeed) September 15, 2022<\/a><\/p><\/blockquote>\n

Ahead of the Merge, the blockchain analytics platform Nansen released a report showing<\/a> fiv entities holding 64% of all staked Ether, with Coinbase, Kraken and Binance accounting for nearly 30% of staked ETH. Reports also showed that the majority of 4,653 active Ethereum nodes<\/a> are in the hands of centralized web service providers like Amazon Web Services (AWS). <\/p>\n

“Since the successful completion of the Merge, the majority of the blocks \u2014 somewhere around 40% or more \u2014 have been built by two addresses belonging to Lido and Coinbase. It isn\u2019t ideal to see more than 40% of blocks being settled by two providers, particularly one that is a centralized service provider (Coinbase),” explained Ryan Rasmussen, crypto research analyst at Bitwise. He\u00a0<\/p>\n

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This isn\u2019t ideal. However, I think Lido will struggle to maintain this market share as more staking service providers and competitors of Lido enter the space and solutions like Rocket Pool become more popular. https:\/\/t.co\/A5s9FeICLD<\/a><\/p>\n

\u2014 Ryan Rasmussen (@RasterlyRock) September 15, 2022<\/a><\/p><\/blockquote>\n

PoS is often believed to lead to centralization since it favors those with a higher token supply over those with lower amounts. As an example, the new consensus mechanism in the Ethereum blockchain relies on validators \u2014 not miners \u2014 to verify transactions. To run a validator and be rewarded, participants must stake 32 ETH, which is equivalent to roughly $48,225 at press time. <\/p>\n

PoS supporters, however, argue that the mechanism is more secure and eco-friendly than PoW. Ethereum co-founder Vitalik Buterin has predicted that the transition would not only bring down the energy consumption by around 95% but also help scale the network, with the transaction processing expected to get on par with centralized payment processors, features that are expected to take place in the second half of 2023.<\/p>\n<\/div>\n


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Analysis from Santiment indicates that 46.15% of Ethereum\u2019s PoS nodes are controlled by only two addresses. Hours after the Merge, the first address has validated about 188 blocks or 28.97% of the nodes, and the second has validated 16.18%, or 105 blocks. On Twitter, the data became a controversial topic as users debated about the […]<\/p>\n","protected":false},"author":1,"featured_media":29462,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[41],"tags":[1039,11263,21,158,9224,4359,1586],"class_list":["post-29461","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum","tag-addresses","tag-controlled","tag-data","tag-ethereum","tag-nodes","tag-pos","tag-santiment"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/09\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvNjcyOTBhMzctYTA1OC00NzRkLTkxZDItYTIxY2NjZTliNDkxLmpwZWc.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/29461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29461"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/29461\/revisions"}],"predecessor-version":[{"id":29463,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/29461\/revisions\/29463"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/29462"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29461"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}