Ethereum 2.0 upgrade has brought more centralization to the blockchain
JPMorgan Chase &. Co. has shed light on how the Ethereum network decentralization has decreased significantly since the Merge event and Shanghai upgrade went live. The rise of staking and centralization Since implementing the Merge and Shanghai upgrades, Ethereum has seen a substantial uptick in staking activities. Staking, a process where users lock up their crypto assets to support network operations, has its merits. According to a CoinDesk report citing JPMorgan research, this surge in staking activity comes at a cost: centralization . Traditionally, many in the crypto community prefer decentralized liquid staking platforms like Lido over their centralized counterparts. Lido’s approach included adding more node operators to ensure no single entity controlled a significant portion of staked Ether (ETH). The aim was to address centralization concerns. However, centralization remains a risk. A concentration of liquidity providers or node operators could act as a ...