Why are Ethereum PoS nodes controlled by 2 addresses

The Merge gave birth to Ethereum PoS, a complete transition from an energy-intensive PoW consensus mechanism to an environmentally friendly PoS consensus mechanism.  After the Merge, crypto analysis has had a microscopic eye on the behavior of the new Ethereum network. One of the most notable anomalies is that only 2 addresses dominated the validation of nodes within the PoS ecosystem. They control 46% of the Ethereum PoS nodes.

The new Ethereum PoS – the role of node

The transition to Ethereum PoS is a massive contribution to global environmental concerns. According to Ethereum co-founder Vitalik Buterin, the change could reduce global electricity consumption by 0.2%.  The transition to the staking mechanism gives significant importance to the nodes. The nodes in a PoS ecosystem are responsible for staking. The nodes stake the tokens in exchange for a chance to be selected to produce the next block of transactions.

Is Ethereum 2.0 headed to Centralization?

According to the recent findings after The Merge, only two addresses control 46% of these Ethereum PoS nodes. These nodes bring about the centralization of the decentralized blockchain. If the two addresses are compromised, the network could be at risk. The most dominant address has already validated 188 blocks, representing 28.97% of the total validations on the platform. Similarly, the second most dominant address has validated 105 blocks, representing 16.18%.

Previously, the Ethereum Proof of Work ecosystem made it extremely challenging to distribute the control of the blockchain to all ETH holders due to the high energy consumption of the PoW consensus. The PoS ecosystem should ease the process and ensure further decentralization of the Ethereum platform over time.

Developments after the transition to Ethereum PoS

The Merge has elicited reactions across the crypto space, with many commending the change from an environmental point of view. The pressure grows for other PoW ecosystems that notably record larger carbon footprints, for example, Bitcoin. The transition of Ethereum from PoW to PoS has shown developers that it is possible to make blockchain more environmentally friendly moving forward and contribute positively to global environmental and energy concerns.

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