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Ethereum and Centralization Theories

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Written by   127
2 months ago

The decentralization of the Ethereum Network has been a huge debate among crypto investor groups. Investors started to believe that we are seeing the negative impacts of the recent event called merge on the approval of transactions in the blockchain. After the merge event, the Ethereum Network switched its consensus model to Proof of Stake rather than the previous version called Proof of Work.

The Merge event made Ethereum "ultra sound money" because it was a good ETH burner that significantly reduced the emission of ETH. You can view these cool charts at ultrasound.money website.

It has been around 2 months since the merge took place. Despite the fact that ETH is now environmentally friendly and sound, a brand-new concern has emerged: The Tornado Cash Txs Crypto ecosystem fights for decentralization and censorship resistance in nature. Centralized ValidatorsWe are confronted with a mismatch in the operations between the "shared vision" and the actions taken by MEV Boost protocols.

Ultrasound Money is Okay, What about Centralization?

I think Proof of Stake mechanism can be a good fit for such projects as Ethereum which are named as smart-contract blockchains. They are required to be fast and cheap for smart contract transactions. However, we all should keep in mind that Proof of Stake is not the best option available. Rather, Delegated Proof-of-Stake is likely to be the most appreciated model in the near future.

It might appear as though they are not permitting a few obscure exchanges of Twister Money, which incidentally permits troublemakers to cash launder, yet that is only the first step that centralization appears on the second top crypto project in the list of crypto market capitulation.

Cryptobriefing shows that the centralization level may reach "risky levels" as the transactions are approved by some groups of people who have enough stake to have the power to do so.

OFAC Compliance for what purpose?

Who will validate your transactions when the MEV (Maximum Extractable Value) mechanism outperforms the rest of the validators if, at some point, the U.S. Treasury decides to blacklist individuals who use Binance, Coinbase, FTX, and other similar platforms?

I think that the Flashbot makers don't want people to see the threat that their semi-centralized concept poses. Despite the fact that the coin I invested in has 12 Gwei tx fees—which are better for the environment and reduce emissions—I'm not happy about the recent Merge.

They missed the fact that this idea would be a fantastic event for any other cryptocurrency other than Ethereum. Despite this, crypto investors continue to consider Ethereum to be the platform on which they can store their digital and crypto assets because it is a secure blockchain that is used by millions of people.

With the recent Merge, could we create "a safer blockchain for our digital assets" rather than less inflationary crypto?

We are currently unable to. I believe we need more updates to address some fundamental issues!

What do you think of it?

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Written by   127
2 months ago
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I need to start using cryptocurrencies.

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2 months ago

BCH can be one of the most useful ones for that mate ^^

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2 months ago