E Point Perfect
Crypto

Ethereum (ETH) on PoS Already Under 51% Attack: Investor Jason Williams



article image

Vladislav Sopov

Seasoned investor and award-winning author explains why post-Merge Ethereum (ETH) looks centralized for him

Contents

Prominent investor and writer Jason A. Williams, a founding partner of Morgan Creek Digital Assets, slams the decentralization of the soon-to-be post-Merge Ethereum (ETH).

Jason Williams warns about “51% attack on ETH 2.0”

Mr. Williams has taken to Twitter to criticize the upcoming Ethereum on proof of stake (previously known as Ethereum 2.0, or ETH2). According to him, its staking design is very far from being fair and inclusive.

A group of insiders and founders are already responsible for controlling over 51% of all Ethers (ETH) locked in public staking mechanisms.

Here’s why an attack from PoS “whales” looks predictable and inevitable for Mr. Williams. “Honest” stakers, he claims, are unable to somehow protect themselves from “abusing” the strategy of whales.

Ads

Solana’s co-founder, Anatoly Yakovenko, shared his mixed feelings about the decentralization status of Ethereum on PoS:

Ethereum devs have had a relentless focus on enabling decentralization that is above of what was achieved with previous generation networks. The results of all this r&d has had a ton of influence on how I think about solving these same problems

Community concerned about centralization of post-Merge Ethereum (ETH)

There are a number of indicators that suggest that Ethereum (ETH) staking might be vulnerable to centralization issues post-Merge. For instance, according to Nansen, almost 2/3 of staked Ethers (ETH) are controlled by Lido Finance, Coinbase, Kraken and Binance structures.

As covered by U.Today, these entities (alongside Bitcoin Suisse and Staked.US) have controlled Ethers (ETH) in ETH2 deposit contracts over recent months.

Also, over 52% of Ethereum (ETH) nodes are hosted by heavyweight infrastructure provider Amazon Web Services (AWS).





Source link

Related posts

Cardano’s Input Output Announces Research Hub at Stanford

Dawn Zuniga

Chainlink (LINK) up 10%, Shows One of Best Performances on Market

Dawn Zuniga

Is It Over Yet? Bitcoin Sees Modest Recovery, But Analyst Warns That It May Drop “Much Lower”

Dawn Zuniga

Jim Cramer Believes Crypto Has Much More Room to Fall

Dawn Zuniga

Crypto Market Review, July 15

Dawn Zuniga

Whopping 750 Billion SHIB Suddenly Grabbed by “Gimli” Whale on Dip

Dawn Zuniga