The terms of services, appointed by Ethereum’s second-biggest host Hetzner, prohibit customers from running nodes, mining, and farming, plotting, storage of blockchain data, and trading.
When the Ethereum ecosystem reached its final stages in preparing for the long-awaited updates, The Merge, German cloud provider Hetzner, reiterated its stance against allowing mining operations for both proof-of-stake (PoS) and Proof of work (PoW) applications.
Hetzner, a private, centralized cloud provider, intervened in the debate about the implementation of blockchain nodes, highlighting its terms of services that prohibit customers from using the services for crypto activities. However, the Ethereum community took the discovery as a threat to the ecosystem as Hetzner’s cloud services host nearly 16% of the Ethereum nodes, as shown below.
In crypto, dependence on centralized service providers has historically been considered a negative trait when it comes to long-term viability – and for good reason. Redditor u/Supermann- questioned the anti-crypto policies laid down by the second biggest Ethereum Mainnet host, Hetzner. Clarifying the doubts and legal implications of using his services for cryptographic activities, Hetzner said:
“Using our products for any application related to mining, even remotely related, is not permitted. This includes Ethereum.”
The company also stated that the non-allowance extends to running nodes, mining and farming, plotting, storage of blockchain data and trading. Although he recognized the extensive use of his services to implement Ethereum, Headsner found that “we have been internally discussing how we can best address this issue.” As a fair warning to the community, Hetzner added:
“If you, or any other potential customers are unsure about whether your use case will violate our ToS, please reach out to us.”
The latest revelation from german cloud provider Hetzner showcases the impact of the decision made by centralized entities on thriving crypto ecosystems.
Most environmental systems currently operate on Amazon.com, which hosts 54% of the total Ethereum nodes. Some of the mainstream cloud providers that currently host Ethereum nodes include Oracle Cloud (4.1%), Alibaba (2.8%), and Google Cloud (2.7%).
Discussions around the Ethereum upgrade have unknowingly spurred numerous misconceptions about what it means for the future of the blockchain..
Lower gas bills and faster transactions are the biggest rumors spreading across the ecosystem, which have been confirmed to be untrue. However, a subsequent upgrade, named the Shanghai upgrade, will deliver faster and cheaper transactions.
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