When the Ethereum network is ready to roll out the final step of its upgrade, a new problem emerges. Heztner, a cloud provider based in Germany and the second-largest platform host in the world, has declared its opposition to certain practices.
Hetzner stated that it would not support mining for Proof-of-Stake (PoS) or Proof-of-Work (PoW) blockchains. According to the host’s terms of service, this would have a major effect on the impending Merge.
Hetzner Specifies Service Policies
Recently, it was discovered in a conversation that the centralized cloud provider has banned its Ethereum customers from running their own blockchain nodes. Hetzner also mentioned that it will put a stop to some cryptocurrency-related operations on the Ethereum network.
The Ethereum community, however, was surprisingly unrestricted by the firm. The community saw Hetzner’s action as harmful to the network’s ecology. Almost one-sixth of all Ethereum nodes are hosted by Hetzner, thus this makes sense.
In the crypto community, there is a stigma attached to using centralized infrastructure. The digital asset industry views it as a threat to the sector’s viability in the long run.
The provider’s anti-crypto measures have been criticized for being restrictive and intolerant by many customers. At the same time, Hetzner explained the legal standing of utilizing its services for crypto operations.
Use of the company’s products in connection with mining is expressly forbidden, per the company’s statement. This includes maintaining nodes, mining, and storing information and assets related to blockchains. Additionally, the corporation highlighted its allowance of powering Ethereum, which it recognized is up to the company’s choice.
A new development once again highlights the drawback of relying on consolidated service providers. To put it simply, this action hinders the expansion plans of successful crypto enterprises.
Amazon.com is the backbone of the Ethereum ecosystem, powering 54 percent of all nodes. Additionally, Oracle Cloud, Alibaba, and Google Cloud are now hosting the nodes, accounting for 4.1%, 2.8%, and 2.7%, respectively.
The Future of Ethereum is Chaotic
Ever since the Ethereum core development team announced the release date, the impending Merge upgrade has been a hot topic of discussion. Misconceptions concerning the long-term viability of the blockchain network are inevitably raised as a result of this conversation.
Reducing gas costs for the network has been a sore point for some time, and erroneous discourse has centered on this topic. The network benefits as PoW is replaced by PoS as the consensus protocol.
In contrast, decreasing gas prices is primarily related to increasing network capacity. The reduction of transaction fees is at the top of every investor’s wish list, but this will not happen.
After the Merge, the transaction speed of the network should also be taken into account. While this change will speed up processing, it may be so modest that people don’t even realize it.
There will be an improvement in Ethereum’s overall results, but how much is still unknown. The network’s enthusiastic user base is optimistic about its future, but only time will tell if that optimism is justified.