Vitalik Buterin, the co-founder of Ethereum, frowns upon the idea of Ethereum censorship by the Office of Foreign Assets Control of the US Treasury Department (OFAC). He contended that such activity constitutes a network assault. Consequently, it might provide outcomes in several dimensions.
Buterin revealed his view on the matter in a tweet. In a Twitter poll conducted by Eric Wall, he revealed that he voted in favour of ETH stake destruction by social consensus.
There are several responses to OFAC’s imposed censoring of the cryptocurrency mixer Tornado Cash. First, many are concerned about the possibility of Ethereum being censored following its transfer.
With the Merge, however, the blockchain would get more validators from the Beacon chain. Nonetheless, a Dune dashboard suggested that over 66% of Beacon chain validators would adhere to OFAC action.
In addition to obtaining compliance from validators, there are further factors of possible censorship to consider. The majority of staking providers, such as Coinbase, Lido, Staked, Bitcoin Suisse, and Kraken Exchange, may comply with OFAC’s censorship and control of Ethereum.
Many fear that Ethereum is more subject to compelled laws and censorship. Upon the blockchain’s shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS), the significance of this position will increase (PoS).
Up to 62% of Ethereum users hold the notion that providers should destroy ETH stakes whenever they decide to filter transactions. The choice corresponds with that of Ethereum co-founder Vitalik Buterin. He selected the destruction of the staked tokens.
The Ethereum Community Will Help Fight Censorship
The community would engage in vigorous opposition to any prospective network censorship. Its resistance to authorities’ coercive measures might enable the basic basis of the cryptocurrency idea.
For instance, some individuals are already considering removing their ETH tokens from centralised exchanges. They are aware that these exchanges will always comply with the censorship of authorities.
Increasing enforcement by governments and regulators poses a danger to the decentralised money environment. Attacking open-source technologies and developers aggressively undermines the foundation of decentralisation.
Various DeFi assets, applications, and initiatives, including as smart contracts, protocols, stablecoins, DAOs, and businesses, are potential targets.
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