Hetzner lays down anti-cryptocurrency policies prior to Ethereum Merge

With the Ethereum ecosystem reaching its final stages for the Merge to finally happen, German cloud provider Hetzner repeated on its stance against the conducting of mining operations for both proof-of-stake (PoS) and proof-of-work (PoW) applications, as reported by Cointelegraph.

According to Cointelegraph, Hetzner, a centralised cloud provider, entered a discussion around running blockchain nodes and emphasising its terms of services which prevents customers from usage of cryptocurrency activity based services. However, the Ethereum community showed the revelation as a threat to the environment, with Hetzner’s cloud services hosting close to 16% of Ethereum nodes. 

On the basis of information by Cointelegraph, for cryptocurrencies, the dependence on centralised service providers has been historically considered negative with regard to long-term sustenance. Redditor u/Superman- asked questions on the anti-cryptocurrency policies by Hetzner, who also happens to be a Ethereum Mainnet host. “Using our products for any application related to mining, is not permitted. This includes Ethereum,” Hetzner said, to clarify doubts on it cryptocurrency-based services. Through a statement, the company said that non-allowance leads to running nodes, mining and farming, plotting, storage of blockchain data and mining. 

Moreover, Cointelegraph noted that based on the latest update from Hetzner, it showed the effectt of decisions made by centralised bodies on developing cryptocurrency ecosystems. Maximum of Ethereum ecosystem functions on Amazon.com, which hosts 54% of the total Ethereum nodes. Examples of mainstream cloud providers which host Ethereum nodes include Oracle Cloud (4.1%), Alibaba (2.8%) and Google Cloud (2.7%). While discussions around Ethereum upgrade have went up, misconceptions around the future of blockchain have also increased. Reduced gas fees and faster transactions are considered to be some of the rumours, which have been reportedly confirmed to be untrue. However, the Shanghai upgrade is expected to deliver faster and cheaper transactions.

(With insights from Cointelegraph)

Also Read: Block-the-Talk; Vijay Pravin Maharanjan of bitsCrunch on the importance of non-custodial wallets in blockchain security

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