The second-ranked cryptocurrency by market cap, Ethereum (ETH), is expected to increase in value and usage following the successful Merge upgrade that switched Ethereum (ETH) to the Proof-of-Stake (PoS) protocol.
However, during the early stages of the upgrading, worries about the network’s centralization are starting to surface.
Anthony Di Iorio, a co-founder of Ethereum, expresses concern in this line about the dominance of a select few holders on the Ethereum network and notes that PoS is not now the ideal method, he said during an interview with Kitco News on September 29.
Iorio made a point of highlighting the dominance of platforms like cryptocurrency exchanges over the Ethereum network. He expressed hope that decentralization would eventually be accomplished though.
“I’m concerned with the centralization risks of proof-of-stake. I think right now, it’s been shown that there are only two addresses that are accounting for almost 50% of all validating. <…> I’m concerned with entities such as exchanges that are having a lot of the strength and the validating that’s going on right now, so it’s not a perfect system, and who knows, there could be things that come out that weren’t thought about that might lead to bigger risks,” Iorio said.
Ethereum wanted to be decentralized
Iorio further emphasized that Ethereum’s original vision of having more people participate in the asset’s governance does not correspond with the centralization that is currently being seen. If the worries continue, he said, it might have an effect on business and the regulatory future.
“What you want with decentralized networks is robust nodes; you want many, someone that’s running a technology people do anywhere in the world to participate and help strengthen the ecosystem to be rewarded for doing so. but it doesn’t help when you only have a few, and it becomes more and more centralized,” he added.
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