Ethereum Gray Glacier

Hetzner, the crypto community is questioning Ethereum’s threat and reliance on centralized web hosting providers. Hetzner, a well-known web hosting company for maintaining Ethereum nodes, was chastised after prohibiting cryptocurrency users from using its services. Because of its decentralized blockchain technology, Ethereum allows anyone to set up a node and participate in the network’s operation.

Many of these users use cloud computing services to host their nodes on the Ethereum network. According to Ethernodes.org, approximately 62% of all Ethereum nodes use a hosting provider such as Amazon. Hetzner currently hosts 14% of Ethereum nodes, with the German company using 10% of those hosted nodes.

This issue reappeared on August 26 after W3bcloud co-founder Maggie Love mentioned it in a tweet.

Ethereum Threat: Don’t Use Us for Crypto, Hetzner Warned

Hetzner officials stated on Reddit on August 23, warning Ethereum users not to use the platform for cryptocurrency-related purposes. Instead, it applies to blockchains that use both proof-of-stake and proof-of-work algorithms. Users are prohibited from running trade platforms, yield farming software, mining equipment, or blockchain nodes on Hetzner systems.

Hetzner’s Twitter account responded to a tweet from Maggie Love on August 26 by directing followers to a Reddit post. Hetzner tweeted a link to the Reddit thread and asked that all Ethereum users read it. In the article, Hetzner confirmed that all forms of cryptocurrency are prohibited.

The company knew many Ethereum users were already using Hetzner, but users reacted differently. Some questioned the prohibition and criticized the company’s mention of a mining ban. Furthermore, several Ethereum-related Twitter users chastised Hetzner for its policies.

Why Does Hetzner Prohibit the Use of Ethereum?

Hetzner’s comments enraged the cryptocurrency community worldwide. Many Web3 supporters are concerned about the Smart contract platform’s reliance on a centralized website hosting infrastructure. Hetzner, on the other hand, claims that cryptocurrency miners are not permitted to use its hardware to mine cryptocurrencies such as ETH and BTC.

However, it is popular among node operators. For instance, a sales representative responded to Crypto Briefing’s request to explain Hetzner’s anti-crypto stance by saying that the company prohibits using Ethereum and other cryptocurrencies because of some of its problematic tokens. As a result, several Ethereum community members ignored the issue of centralization.

While the situation is “dangerous,” Ethereum miners or stakes could transfer to other servers if a cloud services provider ceases operations, according to Guillaume Ballet, an Ethereum core developer. According to Mikko Ohtamaa, a seasoned crypto expert and researcher, this limitation only applies to virtual servers and has no bearing on the real servers used by Hetzner clients.

Ethereum Threat

Some users argue that the network’s decentralization suffers due to Ethereum’s reliance on services such as Hetzner and Amazon Web Service, both of which have been the subject of considerable controversy. For instance, Jacob Gadikian works for Notional DAO, which employs Hetzner and provides validator services.

He is attempting to contact Hetzner’s executive team to explain the company’s position on using its products by nodes in blockchain networks. However, the Hetzner event will undoubtedly spark more debate about the importance of decentralization in the crypto network.

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