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- The Merge is the upcoming upgrade on Ethereum blockchain.
- The Merge will shift blockchain’s PoW algorithm to PoS.
- Ethereum was trading at 1,504 USD at the time of writing.
Hetzner Warns Clients Following The Merge
Ethereum’s much anticipated event which will shift the proof-of-work algorithm to proof-of-stake, The Merge, is getting closer. As the final stages of development are in process, the 2nd biggest Ethereum host, Hetzner, is reiterating its stance against enabling the mining operations for both the consensus mechanisms.
Hetzner, a centralized and private cloud services provider, came forward in a discussion regarding operating blockchain nodes. The company pointed out its terms of services which restricts the clients from utilizing services of crypto activities. However, the community perceived this as a threat for Ethereum, as the cloud service provider hosts around 16% of the ecosystem’s nodes.
Many consider that the cryptocurrencies are a way to open doors towards a decentralized world. Centralization in the cryptosphere is perceived as a negative trait in the long run. And this is all for a good reason. A Reddit user raised questions regarding the anti-crypto policies laid by Hetzner.
The organization responded to clarify legal implications and doubts related to utilizing the services for crypto activities. The company said that ‘Using their products for activities associated with mining are prohibited, even for Ethereum blockchain. Furthermore they said that ‘Non-allowance is extended to operating nodes, trading, storing blockchain data, mining and farming, and plotting.
While taking the extensive use of the organization’s services to fuel Ethereum, Hetzner stated that ‘They are discussing the situation to find the best solution for this issue.’ As a fair warning, the company addressed the community that ‘If anyone is not sure whether their use case will break the ToS, they can contact the team.’
The fresh revelation from the company exhibits the impact of decisions taken by centralized bodies on struggling crypto ecosystems. Most of Ethereum currently rely on Amazon, which hosts more than half of its nodes. Other mainstream cloud service providers hosting the ecosystem’s nodes include Google Cloud (2.7%), Alibaba (2.8%), and Oracle Cloud (4.1%).
Ethereum’s Merge upgrade is expected to take place during mid-September 2022. It will shift the PoW algorithm to PoS consensus.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
