Vladislav Sopov
Centralized hosting and cloud computing platforms are becoming dangerous obstacles to Web3 progress
contents
- Does Hetzner actually ban blockchain nodes?
- Not just Ethereum (ETH)
Yesterday, Hetzner, a top-ranked website hosting platform, made headlines when its representatives stressed that using its servers for crypto-related operations is banned. This is how the global crypto community reacts to the statement and which blockchains are in danger.
Does Hetzner actually ban blockchain nodes?
According to a statement by Hetzner representatives on Reddit, Hetzner hardware should not be used for operations that are in any way related to cryptocurrencies.
popular data center / web host for Etherum and Cosmos nodes announcing all blockchain activity are violating their terms of service
They will push us for maximum decentralization pic.twitter.com/AD1LFy9hNw
— _gabrielShapir0 (@lex_node) August 26, 2022
This includes both Proof-of-Stake and Proof-of-Work blockchains. Namely, Hetzner hardware should not be used to run blockchain nodes, trading platforms, yield farming applications and mining instruments.
The global cryptocurrency community was furious with Hetzner’s statement. Many Web3 enthusiasts are deeply concerned that the largest smart contract platform is heavily dependent on a centralized website hosting platform.
To sue
However, some speakers claimed that the issue may be overstated. Veteran crypto engineer and researcher Mikko Ohtamaa opined that this ban only affects virtual servers and has nothing to do with physical servers owned by Hetzner customers.
VPS are not suitable for mining or PoS from the outset. From an energy consumption perspective, I understand the mining ban. Also, you want to use colocation to definitely run your node on NVM disks. Sounds like a nothing burger. (…) Hetzner also expressly mentions that colocation (physical servers) is fine. So it’s not a categorical ban.
According to various estimates, Hetzner could be responsible for 17% of Ethereum (ETH) nodes.
Not just Ethereum (ETH)
It seems that Ethereum (ETH) is far from the only blockchain that could be affected by Hetzner’s ban. Namely, Hetzner hosts over 35% of Solana (SOL) nodes.
12.2% of Avalanche (AVAX) nodes are also hosted by Hetzner. Amazon Web Services is another important centralized element of the Web3 infrastructure.
Amazon Web Services or AWS is responsible for 45% of the Avalanche (AVAX) ecosystem, 32% of Ethereum (ETH) nodes and almost 4% of Solana (SOL) nodes.
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