10% of Ethereum nodes use their banned web hosting service

key takeaways

  • Hetzner, the web hosting service that hosts about 10 percent of Ethereum nodes, has warned crypto users against using its service.
  • A representative of the company told Crypto Briefing that it has an anti-crypto stance because some cryptocurrencies cause problems.
  • Hetzner’s warning sparked a backlash from the ethereum community.

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About 10% of Ethereum nodes today use Hetzner’s services.

Don’t use us for cryptocurrencies, warns Hetzner

Ethereum’s reliance on centralized web hosting services has once again come under scrutiny from the crypto community.

This time, the discussion focused on Hetzner, a web hosting service that is currently responsible for about 16% of remote Ethereum nodes (since 61% of nodes are hosted remotely, which equates to about 9.76% of all Ethereum nodes).August 23 Reddit post from Hetzner re-emerged on twitter Ethereum users were warned today not to use their services for crypto-related activities.

If there are Hetzner clients using Ethereum, they should read this article,” Hetzner tweet There is a link to a post today. In the post, Hetzner all but confirmed it has a blanket ban on cryptocurrencies. The excerpt is as follows:

Our products are not permitted to be used in any mining-related application, even remotely. This includes Ethereum. It includes Proof of Stake and Proof of Work and related applications. It includes transactions…even if you only run one node, we consider it a violation of our ToS. ”

The post added that the company “knows that there are a lot of Ethereum users at Hetzner right now.” It drew several responses from Hetzner users, some of whom questioned the ban and flagged the company for mentioning the mining ban.

“Considering that 16% of Ethereum PoW nodes are running on your platform, but these are migrating to PoS, can you explain to your clients why you don’t actually allow this in your terms and conditions?” drhexc The next post reads.

“I don’t think the person who operates your account here, maybe Katie on Reddit, really understands what mining is, I want to try to explain, first of all, I use hetzer for zero mining. In fact, hetzner doesn’t work for The mining industry provides any meaningful competitive advantage,” added another from faddat.

Decentralization of Ethereum

Since Hetzner is a web hosting service, it is not suitable for crypto miners who use raw computing power to mine cryptocurrencies like ETH and BTC. However, it is popular among node operators.

Multiple Twitter users within the Ethereum community also criticized Hetzner’s policies. “Due credit must be given,” wrote Rotki founder Lefteris Karapetsas. “@Hetzner_Online More than most projects in this space push us toward decentralization. ”

Encrypted Briefing Reached out to Hetzner for an explanation of its anti-crypto policy, a sales rep said it bans ethereum and other crypto activities because certain tokens cause problems. “If you haven’t heard from the company, please stay with us,” he said.

Ethereum’s reliance on services like Hetzner and Amazon Web Service has been the subject of intense debate in the past, with some arguing that the network’s decentralization suffers as a result. Today’s development comes after weeks of discussions about maintaining the network’s censorship resistance following the Treasury Department’s Tornado Cash ban. Critics say that once ethereum completes its “merger” with proof-of-stake (scheduled to happen next month), it will be vulnerable to attack. Ethereum creator Vitalik Buterin weighed in on the issue, Say He would view compliance with regulatory bans as an attack on the network.

Disclosure: At the time of writing, the author of this article owns ETH and several other cryptocurrencies.

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