In the last months, at least three significant events have raised such questions in my
mind.
Tornado Cash ban in the US.
US Regulators want to treat the Ethereum network as a US entity.
The Binance paused.
Of course, it’s not the first event of this kind.
We had the Ethereum network fork, for example. This was an event that was against core blockchain values. Three examples from the beginning occurred in a short time, and that’s why I am worried about that.
What was wrong with this situation?
Tornado Cash ban in the US.
We described this story several times. Tornado Cash is a dApp that allows users to transfer their resources from wallet to wallet without any possibility of tracking. This app is helpful if you don’t want to show others your personal wallets. It gives users more privacy. Sadly, the app was used by the North Korean regime. Because of that, the app and all future users were banned in the US. Source code was removed from GitHub, and one of the developers that contributed to that project was arrested. The right to privacy on the Ethereum network was taken away because of the national security of the USA.
US Regulators want to treat the Ethereum network as a US entity.
All cryptocurrencies are checked by regulators. The Ethereum network is the second biggest blockchain network. It’s not surprising that US regulators are interested in that market. The nodes (machines on which the network is set up) are mostly placed in the US territory. US regulators are trying to use it to force US regulation on the Ethereum network. The question here is: What if that situation changes in the future and the majority of nodes will be placed in another country?
The Binance paused.
Binance Smart Chain was paused to prevent additional losses when the network was exploited using the bridge. This network has nothing in common with the Ethereum network, but in people's minds, this is also blockchain.
Where is this decentralization? The network is paused because one company wants that. It’s not a web3. The possibility of stopping all networks so fast is against web3 value. If blockchain is paused, it can be controlled in the future. You never know what will be decided by the network owner. This is typical centralized application behavior but implemented on the blockchain. You can read more about this dangerous
precedent on The DAO Joan Index.
Maybe in the future, someone will try to pause the Ethereum network. Check what the decentralization level in the blockchain that you are using is.
Important to mention the Binance wallet or wallet on any other exchange is also not a web3 wallet. The wallet is not yours if you’re not a holder of your private key!
Should we be worried about Ethereum?
I think that it’s important to monitor the situation. A lot of dangerous situations take place on the Ethereum network. I hope that this is only a little war, that the decentral world will win!
WEB3 EXPRESS NEWS
On the Bankless YouTube account, you can watch an interesting after-merge interview with Vitalik Buterin himself.
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