Ethereum Host, Hetzner, Implements Anti-Crypto Policies
Another issue arises when the Ethereum network is gearing up for the launch of the final phase of its upgrade. The German-based cloud provider, Heztner, the second-largest platform host, has laid out its stance against some activities.
Hetzner reiterated that it would not allow mining operations for the Proof-of-Stake (PoS) and Proof-of-Work protocols. This would undoubtedly impact some critical aspects of the upcoming Merge per the host’s terms of service.
Hetzner Lays Out Terms of Service
In a recent discussion, the centralized cloud provider revealed that it had prohibited Ethereum users from using blockchain nodes. In addition, Hetzner noted that it would prevent certain crypto activities on the Ethereum platform.
However, unexpectedly, the Ethereum community had none of the company’s restrictions. The community perceived the move by Hetzner as a threat to the network’s ecosystem. This is because Hetzner is host to almost 16% of Ethereum’s nodes.
There is a general sentiment in the crypto industry about relying on centralized service providers. The digital asset space sees it as a hindrance to the long-term sustainability of its operation.
Many have questioned the anti-crypto policies of the service provider, calling them stifling and unacceptable. Meanwhile, Hetzner clarified the legal implications of using its services for crypto activities.
According to the company’s statement, using its products for any mining activity is not permitted. This also extends to running nodes, mining, and storing blockchain data and other assets. Furthermore, the firm also discussed its allowance of powering Ethereum, which it admitted is subject to the company’s decision.
The latest development again brings the disadvantage of working with centralized service providers. This action impacts thriving crypto entities as they look to scale their operations.
Most of Ethereum’s ecosystem is powered by Amazon.com, which hosts 54% of all Ethereum nodes. In addition, the nodes are currently hosted by Oracle Cloud, Alibaba, and Google Cloud, with each having 4.1%, 2.8%, and 2.7%, respectively.
Ethereum’s Uncertain Future
The upcoming Merge upgrade has been a topic of discourse for some time since the Ethereum development team revealed the launch date. The various misconceptions that arise from the discussion are about the future of the blockchain network.
Furthermore, many inaccurate talks have been centered around reduced gas fees for the network, which has been a pain for some time. The transition from the PoW to the PoS consensus protocol positively influences the network.
However, reducing the gas fees has more to do with expanding the network’s capacity. Lowering the transaction fees has been at the top of the wishlist of all investors, but this will not be the case.
Another area worth considering is the network’s transaction speed after the Merge. While the transition will boost processing time, it could be a slight improvement that goes unnoticed by users.
There will no doubt be some improvement in the general outcome of the Ethereum network, but the extent is not yet defined. The community is bullish on the network’s continued progress, but only time will tell.
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