{"id":493458,"date":"2022-09-16T09:10:15","date_gmt":"2022-09-16T06:10:15","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereum-may-now-be-more-vulnerable-to-censorship-blockchain-analyst\/"},"modified":"2022-09-16T09:10:15","modified_gmt":"2022-09-16T06:10:15","slug":"ethereum-may-now-be-more-vulnerable-to-censorship-blockchain-analyst","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereum-may-now-be-more-vulnerable-to-censorship-blockchain-analyst\/","title":{"rendered":"# Ethereum may now be more vulnerable to censorship \u2014 Blockchain analyst"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a383db409f2d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a383db409f2d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-may-now-be-more-vulnerable-to-censorship-blockchain-analyst\/#%E2%80%9D_Ethereum_may_now_be_more_vulnerable_to_censorship_%E2%80%94_Blockchain_analyst_%E2%80%9C\" >&#8221; Ethereum may now be more vulnerable to censorship \u2014 Blockchain analyst &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Ethereum_may_now_be_more_vulnerable_to_censorship_%E2%80%94_Blockchain_analyst_%E2%80%9C\"><\/span>&#8221; Ethereum may now be more vulnerable to censorship \u2014 Blockchain analyst &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-6ebd806f>Ethereum\u2019s upgrade to proof-of-stake (PoS) may make it more vulnerable to government intervention and censorship, according to the lead investigator of Merkle <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/sciencee\/\" data-internallinksmanager029f6b8e52c=\"5\" title=\"Science\" target=\"_blank\" rel=\"noopener\">Science<\/a>.\u00a0<\/p>\n<p>Speaking to Cointelegraph following the Ethereum Merge, Coby Morgan, a former FBI analyst, and the Lead Investigator for crypto compliance and forensic firm Merkle Science expressed his thoughts on some of the risks posed by Ethereum\u2019s transition to PoS. <\/p>\n<p>While centralization issues have been broadly discussed leading up to The Merge, Moran suggested the prohibitive cost of becoming a validator could result in the consolidation of validator nodes to the bigger crypto firms like Binance, Coinbase, and Kraken.<\/p>\n<p>In order to become a full validator for the Ethereum network, one is required to stake 32 Ether (ETH), which is worth around $47,000 at the time of writing. <\/p>\n<p>A pre-Merge report from blockchain analytics platform from Nansen earlier this month revealed that 64% of staked ETH is controlled by just five entities.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-09\/2d3cccc9-46b1-45e2-9e98-f94614c43079.jpeg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Source: Nansen<\/em><\/figcaption><\/figure>\n<p>Morgan continued to say that these larger institutions will be \u201csubject to the whims of governments in the world,\u201d and when validator nodes identify sanctioned addresses they can \u201cbe slashed rewards and then eventually kicked off the system,\u201d with businesses prevented from interacting with them. <\/p>\n<blockquote><p>Either you will comply and you will siphon off that sort of interaction [\u2026] or you run the risk of being fined, being scrutinized, or potentially being sanctioned yourself.<\/p><\/blockquote>\n<p>Vitalik Buterin spoke about this risk in an Aug. 18 developer <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=jJaCaS0WbIw\">call<\/a>, suggesting one of the forms censorship could take is validators choosing to exclude or filter sanctioned transactions. <\/p>\n<p>Vitalik went on to say that as long as some validators do not comply with the sanctions, then these transactions would eventually be picked up in later blocks and the censorship would only be temporary.<\/p>\n<p>On Aug. 8 crypto mixer Tornado Cash became the first smart contract sanctioned by a U.S. government body.<\/p>\n<p><strong>Related: <\/strong><strong><em>Rep. Emmer demands an explanation of OFAC\u2019s Tornado Cash sanction from Sec. Yellen<\/em><\/strong><\/p>\n<p>In reaction, various entities have complied with the sanctions and prevented the sanctioned addresses from accessing their products and services.<\/p>\n<p>The development has had a large effect on the Ethereum community, with EthHub co-founder Anthony Sassano tweeting on Aug. 16 that he would consider Ethereum a failure and move on if permanent censorship occurs.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I want to be very clear on this:<\/p>\n<p>If the Ethereum base-layer ends up engaging in *permanent* censorship then I will consider the Ethereum experiment a failure and I will move on.<\/p>\n<p>Thankfully, I believe the Ethereum community is strong enough to fight off base-layer censorship.<\/p>\n<p>\u2014 sassal.eth  (@sassal0x) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/sassal0x\/status\/1559357892645437440?ref_src=twsrc%5Etfw\">August 16, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ethereum-may-now-be-more-vulnerable-to-censorship-blockchain-analyst\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Ethereum may now be more vulnerable to censorship \u2014 Blockchain analyst &#8220; Ethereum\u2019s upgrade to proof-of-stake (PoS) may make it more vulnerable to government intervention and censorship, according to the lead investigator of Merkle Science.\u00a0 Speaking to Cointelegraph following the Ethereum Merge, Coby Morgan, a former FBI analyst, and the Lead Investigator for crypto&#8230;<\/p>\n","protected":false},"author":1,"featured_media":493459,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvNzAyMjNhY2ItNzhkNy00YWE1LTg3NmItMWNlMmNhYzNhOGRmLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74983,74891,74876,75995,117,32128,20101,70934,71523],"class_list":["post-493458","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-decentralization","tag-ethereum","tag-proof-of-stake","tag-vitalik-buterin","tag-business","tag-censorship","tag-fbi","tag-regulation","tag-sanctions"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/493458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=493458"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/493458\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/493459"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=493458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=493458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=493458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}