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Ethereum Now 62% Dependent on Amazon, Decentralization Under Threat?

Fri, 11/25/2022 - 13:22
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Gamza Khanzadaev
Ethereum's dependence on Amazon dangerously increases with over 60% of all centralized nodes being hosted by its services
Ethereum Now 62% Dependent on Amazon, Decentralization Under Threat?
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The dependence of the Ethereum network on Amazon's web services continues to worsen. According to the Etherenodes portal, 62.7% of all Ethereum nodes in data centers are hosted by Amazon.

Meanwhile, back in August, that number was 52%. With Hetzner, which initiated an anti-crypto policy and is currently the second largest host of Ethereum nodes, further growth in Amazon's influence can be expected. At the same time, the total number of hosted nodes is 67.3%. Thus, out of 7,250 Ethereum nodes in general, 2,824, or 38.95%, are held by Amazon.

Ethereum's growing dependence on Amazon again raises the question of the decentralization of perhaps the main blockchain of the crypto market. Can Jeff Bezos now disrupt the Ethereum network himself by shutting down more than a third of it?

Another negative smear is the fact that since September, when the move to proof of stake occurred, 53% of Ethereum blocks have complied with OFAC sanctions. In the last 30 days, that number has increased even further to 71%.

Whales are not bothered

All of these facts, however, do not bother large ETH holders one bit. As reported by U.Today, citing analysts from Santiment, in addition to the active accumulation by holders of 100 to 100,000 ETH, extremely large purchases were made by holders of million-dollar stacks in the altcoin. This group of investors bought 947,940 ETH in a single day in November.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.