On September 15, Ethereum successfully switched from Proof-of-Work to Proof-of-Stake. This change brings with it a lot of positive things, but also negative developments. One such negative development is the fact that more than 70 percent of the blocks are produced by entities that fall completely under the control of the US government.
74 percent of the blocks
At the time of writing, the situation is so dramatic that 74 percent of blocks are OFAC compliant. That is, they observe the blacklist of addresses of the OFAC, a major US authority, in block production. This means, among other things, that Tornado Cash transactions by these entities are not included. The higher this percentage, the more problematic the situation.
Incidentally, it would only become really problematic if this part of the network decides to ignore blocks that do not follow the rules. Then ‘the party’ would be complete and the network would split into two separate parts. The odds of that happening aren’t huge, but you never know. Ultimately, Bitcoin is a powerful idea due to its decentralized nature. Once that is undermined in this way, that power falls away.
The Ethereum rate
For the Ethereum price, the Merge has so far been mainly double. In the run-up to the Merge, the price rose sharply, only to start a dump after the event. In the meantime, however, a post-Merge climb has started that is unparalleled. In any case, Bitcoin is currently losing ground against Ethereum, which has registered a plus of 4.87 percent in the past 24 hours alone.
Bitcoin is also experiencing a small rally, because the price is currently at $ 21,400. That is a point where Bitcoin has not stood for a long time. So it seems that amid all the bearish violence, we finally have something to celebrate for the market. We can’t call it a bull run yet, but it’s a start.