Proof of Work Supporters Claim Validator Censors As 59% Of Staked Ethereum Is Owned By 4 Companies – Bitcoin News

Before the merger, Ethereum had dozens of mining pools that determined the hashrate of the blockchain network. That has all changed and most miners plan to migrate to other Ethereum compatible coins such as ethereum classic, ERGO and the new fork ETHW. Right now Ethereum blocks are verified by validators and at the time of writing there are 429,278 validators. However, out of 13.7 million shares, Ethereum is held by four prominent providers.

4 known providers hold 59% of staked Ethereum today news reports that Lido holds 30% of Ether stored four days ago. On September 15, Twitter account ValidatorGlassnode’s leading onchain analyst wrote about the components that currently hold the lion’s share. “We revealed a few more elements,” Checkmate He wrote For someone discussing lido holdings. According to Checkmate, the data shows that 13.7 million shares of ETH and 10 million Ether are held by known providers. This equates to 73% of the ETH held, and the top four providers hold 8.13 million ETH, or 59.3% of the total.

Proof of Work Supporters Request Validator Censor As 59% of staked Ethereum is owned by 4 companies
Glassnode chart shared by the company’s leading onchain analyst Checkmate.

“4.17M on Lido, 1.92M on Coinbase, 1.14M on Kraken, [and] 0.9M on Binance,” Checkmate said. The tweet shared by onchain analyst Glassnode was further discussed by prominent bitcoiner Tuur Demeester, editor of “44% of ETH share is in just 2 entities, Lido [and] Add Coinbase Kraken, and it jumps to 52% of total ETH held by 3 entities,” Demeester He wrote. The editor as well They made fun of him A tweet by Vitalik Buterin talks about the idea of ​​letting average users verify the system.

Proof of Work Supporters Request Validator Censor As 59% of staked Ethereum is owned by 4 companies
Screenshot image shared by editor Tur Dimister.

SEC Chairman Gensler Hints to Take Another Look at Staking Coins, Jack Dorsey Shares Anti-PoS Editorial, Ethereum Supporters Believe People Are Getting Ahead of Them

In addition to bitcoiners like Demeester and Checkmate, US Securities and Exchange Commission Chairman Gary Gensler recently spoke about Hawaii’s testing and depositing coins. According to The Wall Street Journal (WSJ), Gensler said: “From the perspective of the coin… this is another indication that the investing public during the Hawaii test expects returns based on the efforts of others.” While the WSJ stated that Gensler did not specifically mention any currency, many crypto enthusiasts speculated that the SEC chair was discussing ethereum (ETH) and postal coins.

In mid-August, Coinbase founder and CEO Brian Armstrong was asked if the exchange would censor the ethereum protocol with validators. “If regulators require you to censor at the ethereum protocol level with your validators: (a) comply and censor by [the] Protocol level (b) Turn off stacking service and maintain network integrity,” the user asked.

Armstrong They responded by saying Three days later he said: “We really hope we don’t have to face it.” But if we were, I think we’d go with (B). I need to focus on the bigger picture. There may be a better option (c) or a legal test that will help you achieve a better result.

Proof of Work Supporters Request Validator Censor As 59% of staked Ethereum is owned by 4 companies

Many people believe that known verifiers can be forced to comply with regulatory policy and censorship. With four centralized entities holding most of the ethereum (ETH) today, people are concerned about centralizing validators and censoring transactions. On September 14, Twitter founder Jack Dorsey It has been shared. An editorial published on criticizing PoS. The article was written by Scott Sullivan and says, “Being authentic means walking the walk every day.” [eggshells]”And “PoS is a permissioned system.”

Meanwhile, much of the criticism has come from bitcoiners, some of whom have been labeled bitcoin’s biggest proponents. Ethereum supporters think the idea is absurd, and one supporter noted that it would simply jump to the ETH chain, which cannot censor transactions. Ryan Adams tweeted, “Guys.”[the U.S. government] He’s not trying to censor. [ethereum] Validators now. We don’t get ahead of ourselves. But … if they do … I’ll be on an Ethereum fork that doesn’t censor transactions. Simple as that. Layer 0 is our security layer,” added Adams.

Proof of Work Supporters Request Validator Censor As 59% of staked Ethereum is owned by 4 companies
Images shared by Eric Wall Sep 16, 2022 The image on the left was originally shared by Banteg, and the image on the right was originally shared by Alex Svanević.

Bitcoin fan and blogger, Eric Wall; Published A Twitter thread on the Lido issue on September 16 states, “Lido isn’t even a pool.” “Lido can’t dictate what their node operators ban from mining,” Wall continued. Build a wall Explain Since Lido Dao (LDO) is the native management symbol of Lido Financial Project, he is an investor of LDO.

“Lido cannot, as it stands now, fire any of its node operators or divest its stake from them. No more than 13.1% of lido verifiers are based in one country. The geographic spread here is amazing,” Wall’s Twitter thread added.

Tags in this story

Binance, Bitcoiners, Brian Armstrong, Censorship, Centralization, Checkmate, Coinbase, Gary Gensler, glassnode, Glassnode Data, Jack Dorsey, Kraken, Lido, Lido 30%, Major Exchanges, Maximalists, PoS, PoW, Stake-of-Stake, Proof -PoW, Ryan Adams, Second Chair, StackedEther, Tour Demister, Validator, Validators

What do you think about the criticism of Ethereum and validators censoring transactions? Let us know what you think about this in the comments section below.

Jamie Redman

Jamie Redman is the news lead at and a financial tech journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for News about the disruptive protocols emerging today.

Image creditsShutterstock, Pixabay, Wiki Commons, Banteg, Alex Svanevik, Checkmate, Twitter,

DisclaimerThis article is for informational purposes only. It is not an offer or solicitation to buy or sell, or a recommendation or endorsement of any products, services or companies. does not provide investment, tax, legal or accounting advice. Neither the Company nor the Author shall be liable, directly or indirectly, for any damages or losses arising out of the use of or reliance on any content, goods or services referred to in this paragraph.

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