Distinguished crypto analyst Willy Woo believes that Ethereum is already being managed by US authorities
On-chain analyst Willy Woo has tweeted that he believes Ethereum to already be under control of the U.S. authorities, claiming that dApps constructed on the second largest blockchain are usually not decentralized in any respect and that transactions on Ethereum are usually not immune to censorship.
In his tweet, Woo included a screenshot from inclusion.watch and said that 69% of Ethereum blocks are already compliant with OFAC (it has solely been three months after the Merge improve was launched in September).
Is that this proper? Solely 3 months after ETH goes PoS, 69% of blocks are OFAC compliant?
That means Ethereum is already underneath management by the US authorities.
This implies all DeFi apps operating on ETH are usually not decentralised finance. And transactions are usually not censorship resistant. pic.twitter.com/VqNWuTXepn
— Willy Woo (@woonomic) December 23, 2022
OFAC is the Workplace of International Belongings Management, the entity that enforces United States financial sanctions. In October, the share of blocks compliant with OFAC all of the sudden went up from 9% to 51%. This compliance is to do with MEV-Enhance relays, to which the manufacturing of ETH blocks is outsourced.
Ethereum blocks went from 9% OFAC compliant to 51% OFAC compliant up to now month, as mev increase (block outsourcing) takes market share. https://t.co/SYiVHPlTf4
— Lyn Alden (@LynAldenContact) October 14, 2022
There have additionally been different considerations within the crypto group about Ethereum turning into centralized. The primary one is that round 52% of Ethereum nodes are hosted by Amazon Net Companies (AWS), a heavyweight infrastructure supplier.
The second is that after Merge was applied, solely two entities have been answerable for round 50% of the Ethereum community — Lido and Coinbase. That is the place practically 50% of all staked ETH has been held — 30.24% and 14.44%, correspondingly.
Nonetheless, excellent news about that is that Lido is a DAO (Decentralized Autonomous Group), so it permits anybody to affix it to change into a part of the most important entity on Ethereum.