40%+ Ethereum PoS nodes are controlled by two addresses according to Santiment . data


Analysis of Santiment Indicates That 46.15% of Ethereum’s PoS nodes are controlled by just two addresses.

Hours after the merge, the first address validated about 188 blocks, or 28.97% of nodes, and the second validated 16.18%, or 105 blocks. On Twitter, data became a controversial topic as users discussed the impact of the merge on centralization of the world’s largest network.

Prior to the merger, blockchain analytics platform Nansen released a report Show Five entities hold 64% of all tethered Ether, with Coinbase, Kraken, and Binance accounting for nearly 30% of tethered ETH. Reports also showed that The majority of 4,653 Ethereum nodes are active In the hands of central web service providers such as Amazon Web Services (AWS).

“Since the merger has been successfully completed, the majority of blocks – somewhere around 40% or more – have been built by two addresses that belong to Lido and Coinbase. It’s not ideal to see more than 40% of blocks being settled by two addresses that belong to Lido and Coinbase,” said Ryan Rasmussen, crypto research analyst at Bitwise, “there are two providers, particularly a centralized service provider (Coinbase).” Is

PoS is often thought to lead to centralization because it favors those with a higher token supply than those with a lower amount. For example, the new consensus mechanism in the Ethereum blockchain relies on validators — not miners — to verify transactions. To run the validator and reward, participants must participate with 32 ETH, which equates to approximately $4,8225 at the time of publication.

However, PoS proponents argue that the mechanism is more secure and environmentally friendly than PoW. Vitalik Buterin, co-founder of Ethereum, predicts that the transition will not only reduce power consumption by about 95%, but will also help in scaling the network, where transaction processing is expected to be on par with central payment processors, features that are expected to It takes place in the second half of 2023.