The famous Ethereum Merge from PoW to PoS brings with it suspicions. It has raised many concerns in the crypto world, along with the future of this chain and its censorship. The addresses of the smart contracts of Tornado Cash, a privacy-focused mixing protocol, were sanctioned and blacklisted. The U.S. Treasury’s Office of Foreign Assets Control was in charge of that, and now Ethereum’s privacy and censorship resistance are out in the blue. Which is how the suspicions have come about.
The general counselor of Delphi Digital, Gabriel Shapiro, believes that validators in charge of the Ethereum network advocate for laws. These laws increase censorship to the protocol level. This would lead to things going according to the rules without penalization. He says, “can’t self-help by merely avoiding facilitation of blocks containing U.S. – sanctioned transactions, because under certain conditions they might be dramatically slashed from doing so.”
Discusfish, the co-founder of F2 pool, the Ethereum and Bitcoin mining pool operation, states his suspicions the merge brings. He believes that POW consensus assets can handle regulatory pressure more than the proof of stake counterparts.
In his words. “In the discussion about PoS and PoW under regulatory pressure these days, there is one key point to pay attention to: Whether the block producer can remain anonymous and package some transaction that conforms to the consensus on the chain (which may contain some sensitive transactions). PoW can currently do it, PoS currently has certain difficulties because of the need to stake the assets on the chain.”
Of course, not everyone shares the same views on the subject. Many believe the Ethereum merge to PoS consensus-based assets can better handle a censorship attack from gov regulators.
Someone who goes according to this train of thought is Justin Bons. He is the founder and CIO of Cybercapital. While an attack of this type would be quite hard to carry out against Bitcoin and Ethereum. Bon’s claims that the complexity and physical presence required for PoW-based chains would make them easier to target than proof-of-stake assets. This is because PoS is available from anywhere worldwide using low-power equipment.
In Bon’s words. “A sane middle ground must be found which preserves the credible neutrality of blockchains, ensuring privacy for individuals and compliance for companies.”