According to information provided by Cointelegraph, Coby Morgan, a former FBI analyst and the head investigator for the cryptocurrency compliance and forensics company Merkle Science, expressed his views on the dangers associated with Ethereum’s switch to PoS.
According to the principal researcher of Merkle Science, as reported by Cointelegraph, switching Ethereum to proof-of-stake (PoS) may make it more susceptible to government meddling and censorship.
According to information provided by Cointelegraph, Coby Morgan, a former FBI analyst who now serves as the head investigator for the cryptocurrency compliance and forensics company Merkle Science, gave his thoughts on the dangers that Ethereum’s switch to PoS poses. Morgan emphasized the expensive cost of being a validator, which might result in the consolidation of validator nodes to cryptocurrency corporations like Binance, Coinbase, and Kraken. Centralization problems, which led to the Merge, have been widely discussed. To become a complete validator on the Ethereum network, one must stake 32 Ether (ETH), which at the time this article was written had a value of about $47,000.
A pre-Merge study from Nansen’s blockchain analytics, according to Cointelegraph insights, apparently revealed that 64% of staked ETH is controlled by five companies. Morgan stated that governmental restrictions will apply to these entities.
Then Morgan said, “Either you will cooperate and syphon off that kind of engagement, or you run the possibility of being fined, examined, or maybe sanctioned yourself.”
Also noticed by Cointelegraph was Vitalki Buterin’s suggestion that sanctioned addresses may be excluded or filtered as a result of censorship on one of the forms. Buterin said that if some validators continue to oppose the penalties, these transactions will ultimately be chosen in subsequent blocks, and the censorship will last for a set amount of time. On August 8, cryptocurrency exchange Tornado Cash made history by being the first smart contract to receive approval from a US federal agency. As a result, a number of organizations have cooperated with the restrictions and blocked access to their goods and services for the sanctioned addresses.
