Latest news from ETH:Ethereum is a decentralized virtual machine called "Ethereum Virtual Machine", which provides a way to handle peer-to-peer contracts.Latest updates:Ethereum developers are preparing to launch Ethereum 2
Latest news from ETH:
Ethereum is a decentralized virtual machine called "Ethereum Virtual Machine", which provides a way to handle peer-to-peer contracts.
Latest updates:
- Ethereum developers are preparing to launch Ethereum 2.0, which is a major upgrade that will change the way Ethereum works and improve its efficiency and security.
- Ethereum is currently facing some scalability issues, and addressing these issues will be the most important task in the coming months.
- Many blockchain startups are seeking to leverage Ethereum's scalability solutions, such as providing more efficient transaction speeds and reducing transaction costs.
Concerns about Ethereum Centralization have surfaced
Nikolaos Panigrtzoglou, an analyst at JPMorgan Chase, recently emphasized the trend towards centralization of Ethereum networks, especially after Ethereum completes its merger and Shanghai upgrades. They observed that the Ethereum network is becoming increasingly centralized as the overall mortgage yield decreases.
Although platforms such as Lido, a mobile mortgage provider, have a decentralized nature, analysts point out that their operations are actually highly concentrated. This centralization phenomenon may pose a threat to the integrity of the Ethereum network.
If the providers or node operators of quality control services are too concentrated, they may become potential network failure points and may be subject to attacks or collusive behavior. This may lead to oligopolization of the internet and harm community interests.
Therefore, analysts at JPMorgan Chase emphasize that the consequences of this concentration trend cannot be ignored. They believe that if the power of the Ethereum network cannot be effectively dispersed, it may have a negative impact on the security and future development of the network.
They further emphasize that such centralized entities may review or exploit user transactions, thereby harming the interests of the community.
Further offsetting risks and declining returns
Simply put, this is the act of using pledged assets as collateral on various DeFi platforms. JPMorgan analysts say that as Ethereum continues to move forward on the path of pledge, pledge rewards seem to be decreasing. The report shows that the total collateral yield has decreased from 7.3% before the upgrade in Shanghai to approximately 5.5% recently.
Anyway, Ethereum has slightly increased by 1.5% in the past 24 hours, and as of the time of writing, its market price is currently $1643, with a market value of approximately $9 billion.
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