After the Much-hyped upgrade of Ethereum, a new debate has erupted about the decentralized cryptocurrency’s centralization. While the PoW method of validation is highly effective, it is also highly destructive to the environment. To put it in simpler terms, PoW uses the same amount of electricity as a whole country.
Ethereum’s much-hyped Verge upgrade was supposed to make the network less centralized and more resistant to attacks, but many observers worry that it may have the opposite effect. The upgrade aims to replace the power-hungry computers running ethereum nodes with validators, who profit by ordering the network’s transactions.
Danksharding is an attempt to circumvent the problem of MEV while maximizing security and decentralization. This upgrade would also improve the speed of transactions by reducing energy costs for the network. It would also reduce fees by allowing layer 2 networks to post data at a much cheaper rate. But this upgrade is not as easy as it sounds. While it is still in its early stages, there are certain problems with it.
Ethereum’s much-hyped upgrade has created controversy, with industry observers arguing that it makes the network more centralized and vulnerable to attack. The upgrade also replaced power-hungry computers with validators that profit from ordering network transactions. This has sparked a centralization debate that has not subsided yet.
The Ethereum network has recently undergone a controversial upgrade that was supposed to reduce the centralization of the network and make it less vulnerable to attack. However, many industry observers have expressed their concerns about the upgrade. In particular, they worry that the new changes could have the opposite effect. They point to the Nakamoto Coefficient, a mathematical formula created during the early days of crypto, as a potential culprit. The upgrade also replaced power-hungry computers with validators, who profit by ordering network transactions.
Ethereum’s much-hyped “Merge” upgrade has now reached a significant milestone in the network’s development, freeing up developers to focus on scaling the network toward widespread adoption. The upgrade promises multiple protocol improvements, including staker withdrawals.
Concerns over centralization
The Ethereum upgrade was supposed to make the network less centralized and vulnerable to attack, but industry watchers are worried that it may have the opposite effect. The Nakamoto Coefficient – the value attributed to the creator of the blockchain – is the source of this debate. The upgrade will replace power-hungry miners with validators who earn by ordering network transactions.