Opposition To Mining Operations For Both POS & POW – Hetzner Policy

Opposition to mining operations for both proof-of-stake (POS) and proof-of-work (POW) has been reaffirmed by a German cloud provider Hetzner, who said that it will not be permitting mining operations for both POS and POW. This happens just when the Ethereum ecosystem was nearing completion in preparation for the much-anticipated update of the network, or as it is known – The Merge.

Hetzner, a private, controlled cloud provider, chimed in on a conversation about operating blockchain nodes, pointing out that its terms of service forbid users from utilizing the services for crypto activities. Hetzner reaffirmed its opposition to mining operations for both proof-of-stake (POS) and proof-of-work (POW) in a recent statement.

The Ethereum community, on the other hand, saw the disclosure as a danger to the ecosystem, given that Hetzner’s cloud services house approximately 16% of the Ethereum nodes, as seen below.

For good reason, reliance on centralized service providers has generally been seen as a bad quality in crypto when it comes to long-term survival. Redditor u/Supermann- questioned the anti-crypto restrictions imposed by Hetzner, the second largest Ethereum Mainnet server. Hetzner clarified the concerns and legal ramifications of utilizing its services for crypto activity, saying:

“Using our products for any application related to mining, even remotely related, is not permitted. This includes Ethereum.”

The non-allowance also includes running nodes, mining and farming, mapping, storing blockchain data, and trading, according to the corporation. While conceding that its services are widely used to fuel Ethereum, Hetzner stated that we have been internally debating how we can effectively manage this problem. Hetzner added as a fair warning to the community:

“If you, or any other potential customers are unsure about whether your use case will violate our ToS, please reach out to us.”

The new discovery from German cloud provider Hetzner demonstrates the influence of centralized corporations’ decisions on healthy crypto ecosystems.

The Ethereum ecosystem is now dominated by Amazon.com, which hosts 54% of all Ethereum nodes. Oracle Cloud (4.1%), Alibaba (2.8%), and Google Cloud (2.7%) are among the prominent cloud providers that presently host Ethereum nodes.

Unknowingly, discussions regarding the Ethereum upgrade have spawned various misconceptions about what it implies for the future of the blockchain.

The main myths propagating across the ecosystem, which have been verified to be false, include lower gas prices and speedier transactions. However, a later improvement, known as the Shanghai upgrade, will result in speedier and less expensive transactions.

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