Will ETH PoS Survive Due to Growing Centralization Issues?

Will Ethereum move to PoS?

After the move to PoS, Ethereum has two new intersections.

Concerns about centralization are mounting among ETH investors.

Binance and Lido support canceled ETHW flights

The price of Ether will fall below $1400 after the merger

The long-awaited Proof-of-Stake Ethereum was released in September 2022 but quickly ran into problems. After the merger in the Ethereum community, there are also concerns about centralization.

In addition to the centralization concern, Ether also has a fork. Some investors are aware that a proof-of-work (PoW) cryptocurrency called ETHW was created after the September 15 merger, which was announced a week before the main net launch.

Before and after the merger, Ethereum traded between $1,500 and $1,600. However, this price was quickly disappearing. According to CoinMarketCap, Ethereum was worth just $1,382.46 today. In the past 24 hours, the price of ETH has fallen by 5.60%.

Merge PoS Ethereum to create 2 forks

ETHW is not the only ETH-based PoW fork. There is another name called Ethereumfair (ETF) The Ethereumfair team has a website and can be found on various social media channels.

On September 15, the ETHW hash rate hit a record high (ATH) of 80.56 terahese per second (TH/s). Despite this, ETHW's hash rate has fallen lately and the PoW network has since lost 53.35 percent of its hash power. The ETF is down 17.6 percent and currently trades at $1.57 per unit against the US dollar, so ETHW isn't the only problem.

According to CoinGecko.com, the ETF's price has fluctuated between $1.48 and $3.50 per unit over the past three months and has a global trading volume of $3.43 million. The ETF price hit a record high of $20.59 per unit two days ago. It then fell to $0.99 per coin on the same day.

Ethereumfair also collects a percentage of The Merge's remaining hash power. At the time of writing, Ethereumfair has a hash rate of 7.9 TH/s and seven nodes for the new network only. Compared to the hash power of ETHW, the hash power of ETF is 21% of the hash power of ETHW.

Fear of increasing centralization and land acquisition

Mevboost.org has registered six active relays sending at least one block. Of these relays, Flashbots control 82.45% of block deliveries, disrupting centralization within the community. In addition to BloXroute, active relays Blocknative, Eden, and BloXroute are regulated.

Some in the crypto community are concerned that Flashbots are centralized entities that could undermine Ethereum's plans to move to PoS. The theory is that if the blockchain infrastructure is not rebuilt. This makes the network vulnerable to attacks. Some argue that Flashbots will eventually become decentralized, similar to the DAO.

On September 15, Santiment data shows that both wallets handle 46.15% of Ethereum transactions. Gnosis co-founder Martin Köppelmann said both wallets are owned by Lido and Coinbase.

According to Köppelmann, the seven leading organizations control more than two-thirds of the authentication capacity. According to him, the situation was very disappointing. In the past, the crypto community argued that the dominance of centralized business in Ethereum is a problem for cryptocurrencies. Is it "decentralization" of the ecosystem?

The controversy ended when US officials approved Tornado Cash. Regulatory pressure may force some aggregators to censor online transactions, according to some members of the public.

Brian Armstrong, the founder of Coinbase, said the exchange would close the promised product rather than honor the request. At the same time, according to reports, Coinbase may blacklist Ethereum stakes that users deem necessary. In addition, the Wrapped Stake ETH (CBS) smart contract has a blacklisting feature on US exchanges.

ETH Shares Binance And Lido Misses ETHW Airdrop

ETHW airdrop is not available to ETH holders on various platforms. Some of these platforms, including Binance and Lido, do not support the Ethereum Fork, while most stakeholders are waiting for new tokens to be added to the cryptocurrency wallet. She, Binance, Lido, and others said after the split that they do not support distribution.

The news had another big impact on ETHW supporters waiting to go live. When asked if Lido supports ETHPoW, the company said they do not distribute any ETH PoW tokens they own. unless the Company has done so.

Will PoW forks last?

EthereumFair does not have much information about the fork. According to the project's Twitter feed, ETF tokens will be distributed to holders of bitcoin (BTC), dogecoin (DOGE), ether classic (ETC), and class (CZZ). Ether holders are not included in the airdrop as they have ETH instead of CZT.

Many analysts question the longevity of any proof-of-work algorithm-based project, but many traders want to make a quick profit before integration. They will buy or borrow ETH to broadcast.

After collecting the ETHW (or any other fork) tokens, they release them on the market. Since the tokens are given away for free, any winnings are considered a bonus for owning Ethereum.

The pressure to sell ETHW is enormous, especially since few major investors take the innovative project seriously. According to market analysis, 90% of miners on the EthereumPOW network will shut down.