After the successful Merge update that switched Ethereum (ETH) to the Proof-of-Stake (PoS) protocol, it is anticipated that the second-ranked cryptocurrency by market capitalization would increase in terms of value and acceptance.
However, during the opening days of the upgrade, questions regarding the centralization of the network are beginning to emerge.
During an interview with Kitco News on September 29, Ethereum co-founder Anthony Di Iorio highlighted worries about the dominance of a small number of holders on the Ethereum network, adding that PoS does not seem to be the ideal method.
Iorio emphasized the dominance of platforms like cryptocurrency exchanges over the Ethereum network. Nonetheless, he was optimistic that decentralization will be realized in the future.
Iorio also noted that the current level of centralization is not in line with Ethereum’s original vision, which was for more individuals to participate in the asset’s governance. He warned that if the worries remain, it might have an effect on the future of industry and regulation.
According to research published by Finbold on September 15, the Ethereum post-Merge inflation investigation revealed that over 46% of the cryptocurrency’s PoS nodes were controlled by two addresses.
The two wallets were responsible for the majority of Ethereum’s transaction processing, data storage, and addition of new blockchain blocks.