Decentralization is considered a very sensitive topic for cryptocurrency enthusiasts because it is considered the backbone of the entire blockchain industry and can cause serious problems if one of the largest ecosystems in the entire market is not well decentralized.Delphi Digital points out a key issue with
Ownership composition is usually considered a key indicator for determining network decentralization and operability. In the case of ethereum, however, stacking is as important as the distribution of funds; according to Delphi, only four organizations control nearly all of the stacks in the network, and the largest of these regularly have decentralization issues.
Lido Finance remains the largest player in the network, but its basic stETH token redistribution system has some flaws. By then delegating “real” coins to Lido, traders receive liquid stETH tokens that can be used to trade with Ethereum in locked contracts. However, there is a dilemma.
For traders who want to exclude their personal Ethereum from Lido’s contracts, they simply cannot, as ETH is never unlocked from the contract, causing much anxiety among traders.
Other members of the network are centralized cryptocurrency exchanges and either voluntarily donate their assets for placement using the trader’s method or redistribute and diversify their assets using their own methods.
Apart from that, Ethereum is facing a tough year with the number of OFAC-compliant blocks reaching new heights and the network becoming more centralized.
Thanks to the incentives planned by the Ethereum developers and MEV Relay, the network is expected to freeze and deregulate over time. Unable to load all totals. Repeated retries…