Ethereum

<p>Ethereum, a cornerstone of the digital economy with a network value of 278 billion dollars, faces a significant challenge. The majority of its validators depend on a single software, Geth. This situation raises concerns about the risks of centralization and vulnerability.</p>
<h2 id="h-the-reliance-on-geth-a-non-negligible-risk">The Reliance on Geth: A Non-Negligible Risk</h2>
<p>Coinbase, Lido Finance, and Binance, leaders in Ethereum staking services, are in a precarious position. Nearly <strong>80% of Ethereum’s validators use Geth</strong> to connect to the network.</p>
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 <figure class="aligncenter size-full"><img decoding="async" width="782" height="617" src="https://www.cointribune.com/app/uploads/2024/02/ethereum-valisators.jpg" alt="Ethereum validators" class="wp-image-669870" srcset="https://www.cointribune.com/app/uploads/2024/02/ethereum-valisators.jpg 782w, https://www.cointribune.com/app/uploads/2024/02/ethereum-valisators-300x237.jpg 300w, https://www.cointribune.com/app/uploads/2024/02/ethereum-valisators-768x606.jpg 768w" sizes="(max-width: 782px) 100vw, 782px">
  <figcaption class="wp-element-caption"><em>Source: execution-diversity.info</em>
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<p>This <a href="https://www.bloomberg.com/news/newsletters/2024-02-01/coinbase-binance-grapple-with-ethereum-s-geth-diversity-problem" target="_blank" rel="noopener noreferrer nofollow">situation</a> can be considered as Ethereum’s Achilles’ heel. Indeed, <strong>a bug in Geth could, in theory, halt the processing of transactions on Ethereum</strong>. <a href="https://twitter.com/0xCygaar/status/1749486074483654859" target="_blank" rel="noopener noreferrer nofollow">According to experts</a>, such a scenario is catastrophic, leading to losses for investors and potentially splitting the network.</p>
<p>The recent outage caused by a bug in the less-used software, Nethermind, has brought this issue to light. Although Nethermind represents only a small fraction of validators, the incident has prompted increased awareness. The reliance on Geth is criticized even more as its dominance makes the Ethereum network vulnerable.</p>
<p>Major players such as Coinbase, <a href="https://www.cointribune.com/en/crypto-binance-delists-monero-xmr-falls-by-19/" target="_blank" rel="noopener noreferrer nofollow">Binance</a> have <strong>acknowledged the risk and are now exploring alternatives to Geth.</strong> These platforms manage together nearly 13 billion dollars in staked Ether, according to StakingRewards.</p>
<p>This search for diversity comes after years of reliance on a single software client. It reflects a belated realization of the risks of centralization in a field where decentralization is a founding principle.</p>
<h2 id="h-towards-a-crucial-diversification-to-save-ethereum">Towards a Crucial Diversification to Save Ethereum</h2>
<p>This situation shows that diversification is no longer an option, but <strong>a necessity</strong>. Moreover, it highlights a blatant contradiction with blockchain principles.</p> 
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 <div class="tradingview-widget-copyright"><a href="https://fr.tradingview.com/symbols/ETHUSD/?exchange=BINANCE" rel="noopener noreferrer nofollow" target="_blank"><span class="text-primary-color">ETHUSD chart</span></a> by TradingView
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<p>The response of platforms, although belated, shows an awareness. In fact, there is a noticeable <strong>decrease in the use of Geth</strong>, which went from 84% to 78% in less than two weeks, <strong>since the Nethermind bug</strong> on Ethereum. Coinbase and Kraken are indeed turning towards new software clients. However, Binance’s reaction remains unknown.</p>
<p>How Ethereum responds to this challenge will determine not only its survival but also its adherence to the ideals of decentralization. Software diversification is thus essential for the network’s resilience. The question is indeed more than a technical necessity, <strong>it is vital for the future of the Ethereum network</strong>.</p>

Ethereum facing a diversification crisis: a bug could paralyze everything

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