Ethereum's transition to PoS will give regulators more control of the network
The former Blockstream chief strategy officer says The Merge could pose a potential threat to the entire project.
Samson Mow reports that most of Ethereum's problems stem from the preference for tokenomics over decentralization. He believes that the upcoming update will make it easier for regulators to control the network to which ETH belongs. In addition, he also stated that Proof of Stake (PoS) would make this project much more centralized compared to the Proof of Work (PoW) consensus formula currently used.
The transition of the Etherium project to PoS will make it easier for regulators to control the network
According to Samson Mow, the current CEO of STY3, the upcoming Ethereum update has significant drawbacks. He stated that this project has problems caused by putting tokenomics above, in his opinion, much more important factors such as decentralization or security.
In the opinion of the former Blockstream chief strategy officer, moving to PoS will make it easier for regulators to control Ether's network. Samson Mow also emphasized that having a minimum amount of 34 ETH to become a validator is a limitation. He believes that this makes Ethereum more centralized than it is currently under the PoW model, which is another significant weakness of the entire project.
Another flaw that Samson Mow mentioned is that the second largest cryptocurrency somewhat deviates from sticking to the formula "not your private keys, not your virtual currencies". He referred these words to a situation where investors who want to become future validators submit their Ethers to a depository contract.
The STY3 CEO also did not like the fact that in practice over 66% of ETH validators must comply with the restrictive regulations of the Foreign Assets Control Office.
Some experts say that Ethereum has so far focused more on profitability than on the basic pillars of the blockchain. These include: decentralization, scalability and security
Ether with a significant amount of enthusiasts
It seems obvious that not every cryptocurrency market participant is delighted with the changes that will be introduced by the Ethereum development team in recent years, nevertheless, the ETH price quotation on this subject shows growing popularity.
Currently, the cryptocurrency is traded in the region of 1.5 thousand dollars per coin. In the second half of August this year, the price chart recovered and the rate jumped above the $ 2,000 line. Recently, however, there has been a price correction. At current price levels, Ether is more than 68% away from its ATH of around $ 4.8k.
