“45% of all ETH blocks now comply with US sanctions”

In August, the United States government announced that the crypto mixer Tornado Cash has been made illegal for Americans. Not long after, wallet addresses that used the mixer were blacklisted, causing a lot of commotion. But Ethereum (ETH) hasn’t gotten any more decentralized after the merge upgrade. A major blockchain developer confirms that.

Ethereum Meets Sanctions

Labrys CEO Lachan Feeney declares Cointelegraph that about 45% of all Ethereum blocks on the blockchain are now compliant with US sanctions. This means that transactions originating from criminals will not appear on the blockchain, and therefore people must comply with the law in order to use their tokens. That will not only apply to ETH tokens, but to all tokens on the Ethereum network.

According to him, about 45% of all validators are running MEV boost relayservers of the provider Flashbots. This service was previously in the news because this would contribute greatly to the centralization of the network. 45% of the validators would therefore depend on the same provider.

He emphasized that most researchers measure that 25% of all validators use these servers. But in reality, he says, it’s more like 45%. These providers are companies that often even originate from the US. They pay validators extra to use software that extracts transactions like Tornado Cash from the blocks. So it is very attractive for strikers to take advantage of this, even though it does not bode well for the decentralization of Ethereum.

Ethereum is increasingly centralized

Feeney says he wants to create awareness among developers. He fears that in the worst case ‘hard censorship’ will be used. Users are forced directly to comply with certain regulations, instead of, for example, through the courts. With ‘soft censorship’ you would need hours and high transaction costs to add your transactions.

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The fear of censorship has been around for a long time. Nearly half of all blocks would be produced by just two staking providers: Lido and Coinbase. These are simply companies that can be directly tapped on the shoulder by the government. With the Flashbots servers, this percentage will be increased even further.

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