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- Ryan Berckmans, discussed the potential consequences of Tornado Cash ban on ethereum network.
- The ethereum network transition update will be able to bear the censorship risks in the short and long term.
Berckmans’s Discussion in a YouTube Interview
The ethereum community member and investor, Ryan Berckmans, discussed in a recent YouTube interview on Ethereum 2.0. Earlier in August, the ban on Tornado Cash by the U.S. authorities raised the questions as Ethereum transition may be at risk of censorship.
The major concern is that the organisations like Coinbase or Kraken, that control the massive fraction of staked Ether (ETH), may initiate the censoring transactions to comply with the U.S. sanctions.
Berckmans sights the high centralisation of staked ETH, like a temporary issue. He added that the entry cost of staking business may drop because of “maturity of open-source tools and industry expertise as well as the generally reduced risk profile.” Although, it will allow more players to enter in the staking business. Hence, it will decrease the dominance of larger staking pools.
He also points out an idea by saying, “The idea that these will be able to somehow sustainably censor user transactions or affect the fork choice in Ethereum, it’s just not a credible idea.”
In addition, Berckmans also stated that the ban on Tornado Cash in the U.S. was a policy mistake. It will unlikely lead towards more sanctions by the government. He added that the U.S. policymakers may eventually acknowledge the mistake and will take a more favourable approach to ethereum, that is “inherently aligned with America’s interests.”
He furthermore explained that the ““Ethereum is about permissionless innovation, free enterprise, property rights, globalisation.” It must be noted that the most-awaited merge is scheduled on September, 15 2022.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
