Ethereum (ETH) on PoS Already Under 51% Attack: Investor Jason Williams

Prominent investor and writer Jason A. Williams, a founding partner of Morgan Creek Digital Assets, slams the decentralization of the soon-to-be post-Merge Ethereum (ETH).

Jason Williams warns about "51% attack on ETH 2.0"

Mr. Williams has taken to Twitter to criticize the upcoming Ethereum on proof of stake (previously known as Ethereum 2.0, or ETH2). According to him, its staking design is very far from being fair and inclusive.

A 51% attack on ETH 2.0 has already happened.

A small group of early insiders and founders already control more than 51% of stakeable ETH.

There is nothing honest stakers can do when this majority group predictably and inevitably abuses their control of the ledger.

HOT Stories

Shiba Inu (SHIB) Rocket Fuel Pattern Here, Bitcoin (BTC) Ready for Fundamental Shift at $100,000, Solana's (SOL) Road to $300 Continues

Ripple CEO Reacts to Gensler’s Resignation

Breaking: SEC Boss Gensler Announces When He’s Stepping Down

Novogratz: “Bitcoin Nearing $100K Is Just the Start”

— Jason A. Williams (@GoingParabolic) September 13, 2022

A group of insiders and founders are already responsible for controlling over 51% of all Ethers (ETH) locked in public staking mechanisms.

Here's why an attack from PoS "whales" looks predictable and inevitable for Mr. Williams. "Honest" stakers, he claims, are unable to somehow protect themselves from "abusing" the strategy of whales.

Solana's co-founder, Anatoly Yakovenko, shared his mixed feelings about the decentralization status of Ethereum on PoS:

Ethereum devs have had a relentless focus on enabling decentralization that is above of what was achieved with previous generation networks. The results of all this r&d has had a ton of influence on how I think about solving these same problems

Community concerned about centralization of post-Merge Ethereum (ETH)

There are a number of indicators that suggest that Ethereum (ETH) staking might be vulnerable to centralization issues post-Merge. For instance, according to Nansen, almost 2/3 of staked Ethers (ETH) are controlled by Lido Finance, Coinbase, Kraken and Binance structures.

Related

Fri, 06/03/2022 - 12:52

Ethereum's Decentralization After Merge Could Be in Danger as Cardano Remains Mostly Community-Owned

Arman Shirinyan

As covered by U.Today, these entities (alongside Bitcoin Suisse and Staked.US) have controlled Ethers (ETH) in ETH2 deposit contracts over recent months.

Also, over 52% of Ethereum (ETH) nodes are hosted by heavyweight infrastructure provider Amazon Web Services (AWS).