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NewsBTC 2022-09-27 09:57:54

Arthur Hayes Questions PoS Ethereum’s Decentralization, Suggests Rising Price

The controversial Arthur Hayes is asking a burning question in his latest blog post. The former BitMEX CEO compares the PoS Ethereum to Binance Smart Chain, that’s famously and admittedly centralized. Arthur Hayes also describes how the validator’s disagreements with the majority are going to go, and predicts disaster for the dApps that build over a platform that doesn’t prioritize censorship resistance. In the short term, though, he’s bullish on Ethereum. Related Reading: Former BitMEX CEO Arthur Hayes Says “Prepare” For A Massive Bitcoin Rally Before Artur Hayes gets into all of that, he describes a concerning reality that many people in crypto Twitter have noticed and discussed. It has to do with the validators: “As of 21 September, Lido Finance, Coinbase, and Kraken together control slightly over 50% of all ETH staked on the beacon chain. This means they are the most powerful validators and, in essence, they could censor what sorts of transactions are processed. What do all three of these centralized entities have in common? They are all US-owned companies or DAOs with major investments from US venture capitalists.” For those keeping score, that’s a centralizing factor and a few single points of failure. All of those companies are under US jurisdiction, one of the most restrictive in the world. And of course, Arthur Hayes recognizes “protections in place to help ensure decentralization” and that the system punishes validat...

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