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Following the successful Merge upgrade that transitioned Ethereum to a Proof-of-Stake (PoS) protocol, the second-largest cryptocurrency by market cap is expected to rise in value and expand adoption.
However, in the very first days after this event, concerns arose about the centralization of the network. In particular, Ethereum co-founder Anthony Di Iorio expressed concern about the dominance of a few holders in the network, noting that PoS no longer seems like an ideal system.
Iorio pointed to the dominance of players such as crypto exchanges on the Ethereum network. He noted that this state of affairs is not in line with the original idea to involve more people in asset management.
What you want from decentralized networks are reliable nodes, that is, for many who use technology to participate and help strengthen the ecosystem for rewards.
But none of this happens when you only have a few. [нод]and everything is becoming more and more centralized,” Iorio added.
Finbold’s post-Merge analysis of Ethereum’s inflation showed that more than 46% of PoS crypto nodes were controlled by two addresses.
The two wallets account for most of Ethereum’s transaction processing, data storage, and adding new blocks to the blockchain.
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