🚀 Ethereum Faces Centralization Concerns
posted 6 Oct 2023
JPMorgan’s research report reveals that Ethereum has witnessed a surge in ETH staking following the Merge and Shanghai upgrades. However, this growth comes at a cost: increased centralization and reduced overall staking yields.
To combat centralization concerns, Lido has been actively adding more node operators to prevent a single operator from controlling too much staked ether.
Despite these efforts, Ethereum’s centralization poses risks, says in JPMorgan.
A concentration of liquidity providers or node operators could act as a single point of failure or become vulnerable to attacks or collusion, potentially creating an oligopoly that prioritizes their interests over the broader community.
To combat centralization concerns, Lido has been actively adding more node operators to prevent a single operator from controlling too much staked ether.
Despite these efforts, Ethereum’s centralization poses risks, says in JPMorgan.
A concentration of liquidity providers or node operators could act as a single point of failure or become vulnerable to attacks or collusion, potentially creating an oligopoly that prioritizes their interests over the broader community.
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