Germany now has the 2nd largest concentration of Ethereum nodes or validator network. This information was shared in a recent report by CV VC Labs. Germany is doing really well in the crypto and blockchain space, receiving 6% of all European funding in the crypto industry. This shows how fast Germany’s blockchain ecosystem and companies are progressing.
What is an Ethereum node?
A machine that is running the software client is referred to as an Ethereum node. The only way to access the blockchain network is through nodes, which make up its structure. Nodes exchange information with one another in order to verify transactions and keep track of the blockchain’s progress. These machines or servers are in charge of storing, verifying, and exchanging data on the Ethereum network.
Ethereum nodes in Germany
Being the 2nd largest validator network for Ethereum, Germany has a 22.8% share of all the Ethereum nodes out there. This is almost half of the 45.3% Ethereum node concentration that the United States has. So, the top two countries command almost 70% of the Ethereum validator network, which shows that it is not so decentralized.
This is a problem because if a few countries control the entire Ethereum network, the chances of censoring or banning the network would be high. There would also be a chance that the authorities would control transactions which is again against decentralization. Hence, there is a need for the Ethereum nodes to be spread more evenly across the world.
Ethereum has pitched its goal to become a leader in smart contracts. However, that would not be possible if only a few people or countries were validating the network.
Germany is doing really well in the blockchain space
As stated above, the country has received 6% of the total funding that Europe received in 2022. This amounted to $8 billion, which is a huge figure. The total number of companies that received funding this year was 220, and the number of unicorns (companies valued at more than $1 billion) was 34.
What are your thoughts as Germany commands the 2nd position in the Ethereum validator network? And do you think that the network could become more decentralized in the future? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.
Also Read: More than 2/3rd of crypto investors don’t care about the crypto winter.
