Data center operator hosting 17% of Ethereum’s nodes says staking is not permitted

Hetzner Online, a information halfway based successful Germany, said that utilizing its hosting services for immoderate exertion related to cryptocurrency mining is not permitted. The institution disclosed its stance successful a Reddit thread, saying that its prohibition connected mining-related uses includes some Proof-of-Stake (PoS) and Proof-of-Work (PoW) applications.

The company’s stance connected PoS applications could person superior implications connected the Ethereum ecosystem, arsenic 16.0% of Ethereum’s validator nodes are presently hosted connected Hetzner’s servers.

Hetzner’s comments person been met with disapproval from the broader crypto community, with galore criticizing the institution for hosting cryptocurrency-related applications, including mining, for years without disclosing it successful their presumption of service.

Hetzner reveals the terms of centralizing Ethereum nodes

As Ethereum gets person to the Merge, the contention surrounding its modulation to a Proof-of-Stake (PoS) web seems to beryllium increasing. Many person voiced their concerns implicit the existent centralization of Ethereum’s validator nodes, saying that a modulation to a PoS strategy would further exacerbate this problem.

The sanctioning of privacy-preserving services similar Tornado Cash has besides accrued concerns implicit the anticipation of censorship becoming ripe connected the Ethereum network.

The larger speech astir Ethereum’s centralization arose past twelvemonth aft a Messari study revealed that a concerning percent of Ethereum’s Mainnet nodes are hosted connected a fistful of centralized servers similar AWS. With the Merge getting closer, the speech astir the centralization of Ethereum’s nodes has gotten hotter, with information showing that implicit 70% of them are hosted connected 3 unreality providers — Amazon Web Services (AWS), Hetzner Online, and Oracle Cloud. Over 53% of Ethereum’s Mainnet nodes are hosted connected AWS, portion 16% are hosted connected Hetzner.

Chart showing the organisation of Ethereum Mainnet nodes by unreality providers (Source: Ethernodes.org)

And portion galore disquieted astir Ethereum’s over-reliance connected AWS, it seems that a bigger contented could originate with Hetzner. In a Reddit assistance thread, the institution said that utilizing its products for immoderate cryptocurrency-related services isn’t permitted nether its TOS.

“Using our products for immoderate exertion related to mining, adjacent remotely related, is not permitted. This includes Ethereum. It includes impervious of involvement and impervious of enactment and related applications. It includes trading. It is existent for each of our products, but colocation. Even if you conscionable tally 1 node, we see it a usurpation of our TOS.”

The institution said that it’s alert that galore Ethereum users trust connected Hetzner and that it has been internally discussing however to code the issue.

I cognize this is disconnected topic, but if determination are Hetzner customers who are utilizing Ethereum, they should delight work this: https://t.co/Lhlv3KAtUZ –Katie

— Hetzner (@Hetzner_Online) August 26, 2022

In a abstracted enactment summons to a user, Hetzner said that operating applications that are utilized to excavation cryptocurrencies aren’t allowed connected their dedicated and unreality servers. The institution noted that its argumentation doesn’t let moving immoderate exertion with cryptocurrencies, including mining, operating nodes, trading, and storing blockchain data.

Hetzner’s comments seemingly came arsenic a daze to its users, galore of whom assertion they person been moving immoderate oregon each of the above-mentioned applications connected its servers for years without issues. The information that the institution is discussing however to determination guardant and “address the issue” led galore to judge they volition person to permission Hetzner and determination to different hosting service.

The station Data halfway relation hosting 17% of Ethereum’s nodes says staking is not permitted appeared archetypal connected CryptoSlate.