The Part Time Economist

Why So Centralized - Centralized Node Hosting Jeopardizes Decentralization

Why So Centralized - Centralized Node Hosting Jeopardizes Decentralization

The Solana blockchain narrowly averted another network outage as cloud service provider Hetzner turned off 40% of the nodes with the flip of a switch. The issue isn't unique to Solana, and centralized providers host up to 70% of Ethereum's nodes. Cryptocurrency is built on the premise of decentralized participation, but there are strong economic incentives that push many node operators toward centralized hosting solutions. In today's post, we will examine why centralization is so common in an ecosystem that prides itself on being decentralized.

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The Part Time Economist
The Part Time Economist

Hi everyone. I'm just a simple man trying to make my way in the universe. I am passionate about cryptocurrency and hope that I can make at least some small contribution towards promoting wider crypto adoption and understanding.


The Part Time Economist
The Part Time Economist

Hi everyone. This is just a place for me to post some of my thoughts and analysis. I hope that someone finds them useful.

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