French regulator calls out DeFi centralization as AWS gains 6% in ETH node market share

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France’s banking and insurance coverage regulator, the Autorité de contrôle prudentiel et de résolution (ACPR), has published a abstract of its findings from a public session on regulating decentralized finance (DeFi.)

The session acquired important engagement from world DeFi stakeholders, offering helpful insights to tell potential regulatory approaches in Europe.

In line with the ACPR, the two-month session enabled a deeper understanding of DeFi’s dangers and alternatives. Whereas DeFi is usually described as “decentralized,” the regulator argues that “disintermediated” could also be extra correct given the focus of infrastructure with main cloud suppliers, representing a possible operational vulnerability.

The session additionally revealed broad assist for certifying sensible contracts, core to DeFi protocols, with options round proportionality and incident reporting. Regulating intermediaries and person interfaces likewise acquired widespread consensus.

Most contributors advocated persevering with deployment on public blockchains whereas strengthening resilience. The suggestions will assist form the ACPR’s contributions to European regulatory discussions following the Markets in Crypto-Property (MiCA) laws, targeted on points like:

  • Guidelines governing blockchain reliability vital to DeFi.
  • Sensible contract certification frameworks.
  • Governance and conduct requirements for DeFi platforms.

In line with the ACPR, regulating infrastructure, sensible contracts, and companies would permit DeFi to develop whereas defending shoppers. Crypto-native and incumbent monetary establishments submitted suggestions alongside auditors and consultants, offering various views.

Whereas MiCA offers a basis, the regulator believes additional guidelines are wanted for the distinctive nature of DeFi and tokenized finance. The session enabled the compiling of particular suggestions to increase the regulatory perimeter.

DeFi centralization downside continues.

The ACPR’s sentiment that DeFi has a {hardware} centralization downside is shared by some throughout the crypto group itself, as the info reveals. In July 2022, Crypto reported that Amazon AWS facilitated round 32% of Ethereum nodes on the time, with 47% of complete nodes operating by main US web and cloud suppliers. Analysts on the time argued the community’s reliance on firms like AWS might nonetheless permit coordinated assaults throughout suppliers to disrupt operations.

Distribution of ETH nodes on July 2022, per
Distribution of ETH nodes on July 2022, per

The under charts present the distribution of Ethereum nodes by supplier in July 2022 and on Oct. 12, 2023. At the moment, 52.3% of nodes run on internet hosting providers, a 5.3% enhance.

Distribution of ETH nodes on Oct. 12, 2023, per
Distribution of ETH nodes on Oct. 12, 2023, per

In line with essentially the most recent information, Amazon now has the vast majority of internet hosting hodes after rising its market share by roughly 6% over the previous 15 months to 49.19% from 43.27% in July 2022.

UPDATE: The figures on ethernodes charts don’t seem to match these within the tables. The information analyzed follows the desk.

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