Hetzner Anti-Crypto Policies: A Wake-up Call For Ethereum’s Future


The second-largest host of Ethereum, Hetzner, has established terms of service that forbid clients from operating nodes, mining, farming, mapping, storing blockchain data, and trading.

The Merge, a German cloud provider owned by Hetzner, repeated its opposition to permitting mining operations for proof-of-stake (PoS) and proof-of-work (PoW) applications just as the Ethereum ecosystem was finishing up its preparations for the eagerly awaited update.

A conversation about operating blockchain nodes was interrupted by the company, a private, centralized cloud provider, who said that its terms of service forbid users from using the services for cryptocurrency-related activities. However, because Hetzner’s cloud services host approximately 16% of the Ethereum nodes, as seen below, the Ethereum community saw the disclosure as a danger to the ecosystem.

Regarding long-term viability in the crypto world, dependence on centralized service providers has generally been seen negatively—and for a good reason. The anti-crypto measures imposed by the company, the second-largest host of the Ethereum Mainnet, were questioned by Redditor u/Supermann.

Hetzner backing off – Ethereum May Just Have Had A Threat: 

In addition, the corporation stated that running nodes, mining, farming, mapping, storing blockchain data, and trading are all prohibited. Hetzner acknowledged that its services are heavily used to power Ethereum and said, “We have been internally debating how we can best solve this issue.

The most recent information from German cloud service provider Hetzner demonstrates the influence of centralized corporations’ decisions on growing crypto ecosystems.

Amazon.com presently hosts 54% of all Ethereum nodes and powers most of the Ethereum ecosystem. Oracle Cloud (4.1%), Alibaba (2.8%), and Google Cloud (2.7%) are a few of the well-known cloud service providers that now host Ethereum nodes.

Unintentionally, discussions surrounding the Ethereum upgrade have raised many misconceptions about what it signifies for the blockchain’s future. The top five misconceptions regarding the planned Ethereum update were identified in an article by Cointelegraph.