Home Ethereum Ethereum nodes largely run on cloud services – this host says they are banned

Ethereum nodes largely run on cloud services – this host says they are banned

Ethereum nodes largely run on cloud services – this host says they are banned

Popular cloud service provider Hetzner said its product is not aimed at crypto users despite hosting around 10% of all Ethereum knots.

In a Reddit post earlier this week, the company said that running a single node is a “violation”. A node is a computer that, together with other nodes, powers a decentralized network, such as Bitcoin Where Ethereum.

Nodes are needed to run software that can verify blocks and transaction data and operate a network.

Ethereum is the second largest cryptocurrency by market capitalization and, as it operates on a decentralized basis block chainanyone can create a node in order to contribute and participate in the management of the network.

Many of these participants on the Ethereum network use cloud computing providers to host their nodes. According to data from Ethernodes.org, nearly 62% of all nodes on the Ethereum network work through a hosting service, such as Amazon. Of these hosted nodes, 14% currently use Hetznerwhich means that the German company currently hosts 10% of Ethereum nodes.

The issue resurfaced this morning when W3bcloud co-founder Maggie Love lamented the fact in a tweet. Love suggested that Ethereum lacks proper decentralization because it relies heavily on cloud services like Amazon, which itself accounts for 50% of all hosted Ethereum nodes. The tweet also verified Hetzner’s name, and the company responded with a link to a Reddit post in which it said customers using Ethereum “should please read.”

In the post, the company said its service should definitely not be used for things related to crypto, including Ethereum. “Using our products for any mining-related application, even remotely, is not permitted,” he said.

“It includes Ethereum. It includes proof of stake and proof of work and related applications. This includes trade. This is true for all our products, except colocation.

Hetzner added, “We are aware that there are currently many Ethereum users at Hetzner, and we have been discussing internally how best to resolve this issue.”

Hetzner did not immediately respond to Decryptrequest for comment.

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