Ethereum Is Close To Getting Complete Censorship Because Of OFAC Compliance
Keeping in view that the censorship of the protocol level causes hindrance to the objective of the crypto ecosystem to have exceedingly accessible and open finance, the increasing compliance of Ethereum with the standards specified on the behalf of the Office of Foreign Assets Control has been keenly tracked by the community.
OFAC Compliance of Ethereum Reaches Seventy-Three Percent
During the previous twenty-four hours, it has been observed that the Ethereum network’s compliance has reached above its blocks’ seventy-three percent. In the previous month, apprehensions were raised against the matter of censorship as more than half of the blocks on Ethereum were made compliant with the standards set by OFAC.
Nevertheless, mevWatch’s data brought to the front that the OFAC-compliant blocks’ minting regularly has escalated to more than seventy-three percent as of the 3rd of November. A few MEV-Boost relays, under the regulation of OFAC, will get certain transfers censored. Consequently, to guarantee Ethereum’s (ETH) neutrality, the network requires adopting an MEV-Boost relay that would be non-censoring.
The validators on Ethereum can minimize OFAC compliance by eliminating relays existing in the configuration of the MEV-Boost that censors transfers, like Relayooor, Manifold, BloxRoute, and BloXroute Max Profit. The OFAC compliance permits the government agency of the United States to implement trade and economic sanctions. Formerly, the organization took radical measures against several Ethereum addresses and Tornado Cash and sanctioned them.
At the moment, forty-five percent of the entire blocks on Ethereum are considered to be abiding by the OFAC standards. The primary crypto token Bitcoin (BTC) and the 2nd one Ethereum’s (ETH) mainstream adoption elevated swiftly in the previous times. This was witnessed after the introduction of crypto trading by UnionBank (known among the biggest universal banking firms in the Philippines) in alliance with Metaco a Swiss crypto company.
Ethereum Becomes More Centralized after PoS Transformation
In September this year, the multi-year struggle of Ethereum to transform from the PoW to PoS consensus mechanism was effectively accomplished without big issues. Mining was categorized obsolete as the ETH-staking validators replaced the miners. This whole operation caused a ninety-nine percent decrease in the power consumption of the network.
Nonetheless, the platform started moving in the direction of more centralization afterward. Because of this staking substitute, Ethereum is now in the hands of centralized exchanges which are validating it taking into account Lido Finance and others.
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