William Shatner, the legendary Canadian artist who performed Admiral James T. Kirk in the Star Trek saga, expressed his enthusiasm for Ethereum and complimented the blockchain's founder, Vitalik Buterin, on occasion. Shatner highlighted the environmental advantages of ditching the proof-of-work consensus and shifting to proof of stake in his address.
According to numerous studies, including World Economic Forum analysts, the energy usage of the platform’s mining should be reduced by 99.5% as a result of the update. Furthermore, the dismissal of PoW should theoretically strengthen its position in the eyes of institutional investors who have limitations on transactions with PoW cryptocurrencies.
Ethereum's new problems
Nonetheless, despite the transition's generally positive consequences, Vitalik's project encountered new challenges. For example, in the days following September 15, it was revealed that more than 40% of the PoS nodes in the platform are controlled by only two addresses, prompting many to question the blockchain's current decentralization.
The other issue came from an unexpected source, given the current state of the crypto market. It is about SEC Chairman Gary Gensler's statement implying that ETH, which is now PoS-based, can be considered a security. Without noting Ethereum in vain, the official stated that producing revenue by staking cryptocurrencies meets the Howey test for assessing whether an instrument is a security.
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