Data center operator hosting 17% of Ethereum’s nodes says staking is not permitted
Germany-based data center Hetzner Online said it is not allowed to use its hosting services for applications related to cryptocurrency mining. The company clarified its stance on his Reddit thread, saying the ban on mining-related uses includes both Proof of Stake (PoS) and Proof of Work (PoW) applications.
With 16.0% of Ethereum’s validating nodes currently hosted on Hetzner’s servers, the company’s stance on PoS applications could have serious implications for the Ethereum ecosystem.
Hetzner’s comments have come under fire from the broader cryptocurrency community, with many criticizing the company for hosting crypto-related applications, including mining, which it discloses in its terms of service. It never happened.
Hetzner Reveals Price to Centralize Ethereum Nodes
As Ethereum nears a merger, the controversy surrounding its move to a Proof of Stake (PoS) network seems to be growing. Many have expressed concern about the current centralization of validator nodes on Ethereum, and say the move to a PoS system will exacerbate this problem.
The approval of privacy-preserving services like Tornado Cash has also raised concerns about possible censorship on the Ethereum network.
A larger debate over Ethereum’s centralization emerged last year after a Messari report revealed that a significant percentage of Ethereum’s mainnet nodes are hosted on a handful of centralized servers like AWS. Did. As the merge draws near, the debate over the centralization of Ethereum’s nodes heats up, with more than 70% of it being hosted on his three cloud providers: Amazon Web Services (AWS), Hetzner Online and Oracle. The data show that there are Over 53% of his Ethereum mainnet nodes are hosted on AWS and 16% on Hetzner.
While many are concerned about Ethereum’s over-reliance on AWS, it seems there could be a bigger problem with Hetzner. In a help thread on Reddit, the company said Said Use of its products for cryptocurrency-related services is not permitted under the TOS.
“Using our products for applications related to mining, even remotely related, is not permitted. This includes Ethereum. This includes Proof of Stake, Proof of This includes work, and related applications.This includes trading.This applies to all products except Colocation.Even if you run a single node, it is considered a violation of the TOS.”
The company said it is aware that many Ethereum users rely on Hetzner and is discussing internally how to address the issue.
I know this is off topic, but if you have a Hetzner customer using Ethereum, read this: https://t.co/Lhlv3KAtUZ – Katie
— Hetzner (@Hetzner_Online) August 26, 2022
In a separate support ticket to the user, Hetzner said that working with applications used to mine cryptocurrencies is not allowed on dedicated and cloud servers. The company’s policy does not allow applications using cryptocurrencies, such as mining, operating nodes, trading, or storing blockchain data.
Hetzner’s comments seem to have shocked users, many of whom have claimed to have been running some or all of the above applications on their servers without issue for years. The fact that the company is moving forward and discussing how to “handle the problem” has led many to think they should leave Hetzner and move to another hosting service.
