3 Cloud Providers Account For More Than 2/3 Of Ethereum Nodes

The majority of the 4,653 active Ethereum nodes are in the hands of centralized web providers such as Amazon Web Services (AWS), which could “leave Ethereum to central points of failure,” according to the Messari crypto analytics platform.

A post on Thursday shows that the three major cloud providers account for 69% of the nodes hosted on the Ethereum Mainnet, with more than 50% of them coming from Amazon Web Services (AWS), more than 15% from Hetzner, and 4.1% from OVH.

Figures from Ethernodes also show that Oracle (4.1%), Alibaba (3.9%), and Google (3.5%) host nodes.

While the distribution of cloud service providers becomes more decentralized among the bottom third of providers, Messari highlighted a concern in a December 2020 report that the cost nature of a high level of node infrastructure can make the blockchain vulnerable:

“Furthermore high costs to run infrastructure make it more likely that nodes would run infrastructure with cloud computing providers (i.e AWS) – making Ethereum more exposed to central points of failure.”

The node distribution problems Solana faced were similar, with Hetzner accounting for 42% of the nodes hosted on the Solana network, followed by OVH (26%) and AWS (3%).

Furthermore, Ethernode data also shows that the most geographically concentrated nodes are in the United States (46.4%) and Germany (13.4%), accounting for almost 60% of the globally distributed Ethereum nodes. world. As a result, government intervention from either of these countries could seriously affect the decentralization of Ethereum at the node level.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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