Ethereum is bearing the brunt of censorship after a major cloud service provider, Hetzner, which powers around 15% of ETH nodes, categorically declared that it will not permit the use of its products for mining or staking for any application.
“Even if you only run one node, we consider it a violation of our ToS,” Hetzner wrote in a Reddit thread.
The German cloud services company was responding to a user request to run a blockchain node on the web hosting platform. The company sought to clear up any confusion and said the ban also extended to trade.
Although it is aware that many Ethereum users use Hetzner, the firm has discussions within its team to resolve this issue.
The development surprised many and even raised questions about the true decentralization of the blockchain.
According to reports, the majority of the Ethereum ecosystem runs on Amazon.com, which hosts 54% of total Eth nodes. Other well-known cloud providers include Oracle Cloud [4.1%]Ali Baba [2.8%]and Google Cloud [2.7%].
Founder of Web3 infrastructure platform W3bCloud Maggie Love took to Twitter to express her disappointment, saying, “Ethereum can’t be decentralized if the stack isn’t decentralized…” Where’s the dialogue on this subject ?”
The latest news also correlates to recent US Treasury Department sanctions against Tornado Cash, an Ethereum-based utility that allows users to send and receive funds anonymously.
Ethereum nodes face an uncertain future
The Tornado Cash situation has raised concerns in the Eth community about sanctions extending to nodes operating the network or the infrastructure that powers them.
Last week, Ethermine, the largest Ethereum mining pool, stopped processing blocks containing Tornado Cash transactions, a crypto analyst has said. revealed. Overly blacklisted USDC circle on the ETH network freezing all USDC tokens that had passed through the crypto mixer.
This sparked a huge debate about resistance to censorship.
Vitalik Buterin was reportedly furious at the possibility that validators would be forced to comply with OFAC sanctions after the merger.
He, however, agreed with the sentiment that actions that do not include Tornado Cash transactions should be seen as “an attack on Ethereum and burn their stake via social consensus.”