A Blockchain expert says that censorship may now be quicker on Ethereum

According to the head researcher at Merkle Science, putting in place proof-of-stake (PoS) could make it easier for the government to interfere with and censor Ethereum.

In an interview with Cointelegraph after the Ethereum Merge, Coby Morgan, a former FBI analyst and the Lead Investigator for crypto compliance and forensics firm Merkle Science, talked about some of the risks posed by Ethereum’s switch to PoS.

Concerns about centralization have been talked about a lot in the run-up to The Merge, but Moran said that the prohibitive cost of becoming a validator could lead to the consolidation of validator nodes among the largest cryptocurrency firms, such as Binance, Coinbase, and Kraken.

To become a full validator on the Ethereum network, you must stake 32 Ether (ETH), which at the time of writing was worth about $47,000.

Earlier this month, a report from the blockchain analytics platform Nansen showed that only five entities control 64% of staked ETH.

Morgan went on to say that these larger institutions will be “subject to the whims of the world’s governments” and that when validator nodes find sanctioned addresses, their rewards will be cut and they will eventually be kicked off the system, making it impossible for businesses to work with them.

” Either you will comply and you will siphon off that sort of interaction […] or you run the risk of being fined, being scrutinized, or potentially being sanctioned yourself.”

Vitalik Buterin talked about this risk during a developer call on August 18. He said that validators could exclude or filter transactions that have been approved as a form of censorship.

Vitalik went on to say that as long as some validators don’t follow the sanctions, these transactions will eventually be added to subsequent blocks, and the censorship will be temporary.

On August 8, Tornado Cash became the first U.S. government-approved smart contract.
In response, many places have followed the sanctions and made it harder for the sanctioned addresses to use their products and services.

The event has had a big impact on the Ethereum community. On August 16, EthHub co-founder Anthony Sassano tweeted that if permanent censorship happens, he will consider Ethereum a failure and move on.

Latest NFT News, Trendings and Tutorials, right at your inbox, every Monday

The post A Blockchain expert says that censorship may now be quicker on Ethereum appeared first on NFT News Pro.

Related Posts

Bitcoin price slips under $19K as official data confirms US recession

Politicians continue to argue about whether the U.S. economy is in recession, even as data highlights two consecutive quarters of negative growth. Meanwhile, BTC holds $19,000, for…

This altcoin exploded 120%, will it continue to rise in October? Analysts take

Terra Classic’s (LUNC) over 100 percent rally in September has forced analysts to look into how October could be for the cryptocurrency. The recent 1.2 percent burn…

Shiba Inu biggest position for Ethereum whales holding more than $139M – Will SHIB price explode?

Ethereum Whales double down on Shiba Inu buying despite the crypto winter encouraged by discounted prices and the Impressive growth of the Shiba Inu ecosystem driving up…

Hong Kong Protects Local Currency in Forex Market Amid Capital Flight to US Dollar

Following the Bank of England explaining that it would be meddling in U.K. bond markets and the Bank of Japan defending the yen in the foreign exchange…

Biggest Movers: SOL Moves Towards $35.00, XMR Extends Recent Gains

Solana rose for a second straight day on Thursday, as the token moved closer to its long-term resistance point of $35.00. Monero was also in the green…

Bitcoin Mining Industry Reveals Mergers, Hashrate Increases, and New Facilities Amid Market Downturn

While bitcoin is down more than 72% from the crypto asset’s all-time high, bitcoin mining operations are expanding at a rapid pace during the downturn. On Tuesday,…

Generated by Feedzy