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In mid-September, an important event will occur in the cryptocurrency market, the second largest Ethereum blockchain will switch to the PoS algorithm. Investors are in a positive mood to win back this event, judging by the anomalous number of open Call options, which mean a bet on the future growth of ETH.
The founder of the news portal Crypto Pragmatist Jack Niwald has a different opinion, after analyzing the nodes of validators.
They will replace the network of PoW-miners after the transition to Ethereum 2.0. Validators have been working since November last year, anyone could lift the node, having the technical capabilities and 32 ETH placed on a deposit contract in the Beacon Chain network.
Unlike Ethereum, which has 2843 nodes, the second version of the blockchain will become more decentralized. Now the validators have deployed 4688 nodes, but their geography is of concern.
Jack Niwald draws attention to the presence of 27.21% of PoS nodes in the United States, together with Europe, developed countries account for 81% of network control. It is now known for sure that the American validators were purposefully tested by OFAC. This department within the US Treasury department is engaged in monitoring sanctions.
According to Niuoda, the launch of Ethereum 2.0 actually guarantees censorship. Validators will reorganize blocks, blocking wallet transactions on OFAC “black lists”. Probably, our European colleagues will also comply with the regime of sanctions that are dangerous by the secondary effect of application.
Ethereum developers are aware of this problem, but have not yet taken any action. ETH can fall under the sale as soon as the first acts of censorship are made public.
At the same time, the Bitcoin network is more resistant to OFAC. Despite the move of a significant part of the miners to the New World, after the ban on mining by China, the 13239 blockchain node of the first cryptocurrency is more widely distributed around the world.
The network is located in Asia, South America, despite the predominant number of nodes in the US and EU countries. The only problem is that Bitcoin does not support the launch of smart contracts, but in this regard, Ethereum has many competitors who also work on the PoS algorithm.
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