took place last month Ethereum Merge update fixed the energy consumption issue of the ETH network. However, the network’s transition from mining to a proof-of-stake (PoS) system posed new problems.
Crypto critics consider it to have created a monopoly situation in Ethereum following the Merge update. The tables shared by some people known in the crypto community revealed the seriousness of the situation.
Martin Köppelmann, creator of the Gnosis project and crypto expert, on Twitter ETH He shared an alarming picture of the staking system.
We reached another sad milestone in censorship: 51%
This means if the censoring validators would now stop attesting to non-censoring blocks they would eventually form the canonical, 100% censoring chain. pic.twitter.com/JrYUjowLpt— Martin Köppelmann 🇺🇦 (@koeppelmann) October 14, 2022
According to the data shared by Köppelmann, 51% of the shareholders in the ETH PoS system now work according to American regulations. This can cause a huge inconvenience to the ETH network if the United States imposes any censorship.
Investment expert Lyn Alden, who has half a million followers on Twitter, drew attention to another point.
“Last month, only 9% of organizations in the Ethereum PoS system were subject to OFAC regulations. It is worrying that this rate will increase to 51% within 1 month.”
Criticism continues that the Merge update has destroyed the decentralized structure of the ETH network. Eden Network founder Caleb Sherdian made a critical comment on ETH the other day.
According to Sherdian, it is a big problem that ETH tokens locked in the PoS system only make up a small part of the total supply.
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