Vitalik admits Ethereum (ETH) was centralised with Proof-of-Work (PoW) consensus
Vitalik Buterin tried to explain to the Ethereum community that PoS consensus is much better than PoW in terms of decentralisation nature.
Ethereum (ETH) is the second-ranked crypto asset by market cap. Initially, Ethereum was launched on the Proof-of-work (Pow) consensus but in September 2022 Ethereum blockchain shifted all of its operations on the Proof-of-stake (PoS) consensus.
Crypto enthusiasts believe that Ethereum was better on the PoW consensus because it was highly decentralised but now Ethereum is no more decentralised.
Recently Amanda Cassatt, CEO of Serotonin, said some people wish Ethereum hadn’t switched to proof-of-stake (PoS) due to centralization risks and power balance concerns. She mentioned Ethereum now has more centralised validation, and PoS removed initial ecosystem checks and balances.
On 26 April 2024, In response to multiple Ethereum community members’ opinions over the PoS vs Pow, Vitalik Buterin responded and said that Ethereum PoW was also centralised to some degree.
Vitalik said that people didn’t talk about that centralization issue because everyone was aware that the Ethereum blockchain on PoW consensus was only temporary.
Following this statement by Vitalik on the PoW consensus nature, some people said that Vitalik now supports PoS because the Ethereum blockchain is running on Pos, while he forgot that Bitcoin is running on PoW consensus & that it is highly decentralised over PoS.
Ethereum PoS & challenges
When the Ethereum blockchain was running on PoS consensus, people were criticising the Ethereum network for high transaction fees & high electricity consumption.
Now the Ethereum network is not consuming high electricity, because of PoS consensus use. The transition of Ethereum from PoW to PoS failed to stop the mouths of critics.
Some experts believe that Ethereum on PoS consensus is now under the radar of government agencies, as they now consider it an unregistered security token.
In the last couple of months, the crypto community saw a better level of fight between the American securities regulatory body & Ethereum foundation over the nature of the ETH coin.
