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> but I have no idea why it would lead to less decentralization in practice Because it takes money to have enough ETH to be a validator and therefore, you cen
by darth_avocado 4y ago
> but I have no idea why it would lead to less decentralization in practice
Because it takes money to have enough ETH to be a validator and therefore, you centralize. It takes 20ETH to be a validator, and at the height of ETH valuation, that roughly translated to about $100k. Not everyone has that kind of money to stake. Plus, it is well know that majority of ETH or any crypto for that matter is held by a small group of people, which further pushes centralized operations.
- rcxdude 4y agoAs opposed to bitcoin where you need to be able to purchase a large quantity of hardware to have any chance of contributing to validation?
- darth_avocado 4y agoI don’t need 100k to get started.
- Veen 4y agoIt takes 32 ETH to be a validator.
- darth_avocado 4y agoOhh yeah my bad. You’re correct, and it makes it even worse.