Hetzner anti-crypto policies: A wake-up call for Ethereum’s future

Just as the Ethereum ecosystem was in the final stages of preparing for its much-anticipated upgrade. The Merge, a german cloud provider Hetzner reiterated its opposition to mining operations for proof-ofstake (PoS), and proof-of work (PoW), applications.

Hetzner, a private and centralized cloud provider, joined the discussion on running blockchain nodes. He highlighted its terms of service that forbid customers from using its services for crypto activities. The revelation was seen by the Ethereum community as a threat to its ecosystem, since Hetzner’s cloud service hosts nearly 16% of all the Ethereum nodes.

Statistics for Ethereum Mainnet. Source: ethernodes.org

The dependence on central service providers in crypto has historically been seen as a problem when it comes long-term sustenance. Redditor Supermann- challenged the anti-crypto policies of Hetzner, the second largest Ethereum Mainnet host. Hetzner clarified the legal implications and doubts associated with crypto activities using its services.

It is against the law to use our products in any way related to mining. This includes Ethereum.

Hetzner also stated that the company does not allow nodes to be used for mining, farming, plotting, trading, and storage of blockchain data. Hetzner acknowledged the widespread use of its services to power Ethereum. However, he added that the company had been discussing ways to address the issue internally.

“If you or any potential customers are unsure whether your use case violates our ToS, please contact us.”

Hetzner, a german cloud provider, has revealed the effects of central entities’ decisions on flourishing crypto ecosystems.

Amazon.com hosts 54% of all the Ethereum nodes. This is the majority of the Ethereum ecosystem. Oracle Cloud (4.1%) is one of the most popular cloud providers hosting Ethereum nodes. Alibaba (2.8%) and Google Cloud (2.7%) are other options.

Related: Ethereum Foundation clarifies the fact that the Merge upgrade won’t reduce gas prices

Many misconceptions have been created by discussions about the Ethereum upgrade. Cointelegraph’s report highlighted five of the most common misconceptions surrounding the expected Ethereum upgrade.

Rumours circulating about the ecosystem claiming that there will be lower gas prices and faster transactions have been proven to be false. A subsequent upgrade, called the Shanghai upgrade will result in faster and more affordable transactions.


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