Popular cloud service provider Hetzner said its product is not aimed at crypto users despite hosting around 10% of all Ethereum knots.
In a Reddit post earlier this week, the company said that running a single node is a “violation”. A node is a computer that, together with other nodes, powers a decentralized network, such as Bitcoin or Ethereum.
Nodes are needed to run software that can verify blocks and transaction data and operate a network.
Ethereum is the second largest cryptocurrency by market capitalization and, as it operates on a decentralized basis block chainanyone can create a node in order to contribute and participate in the management of the network.
Many of these participants on the Ethereum network use cloud computing providers to host their nodes. According to data from Ethernodes.org, nearly 62% of all nodes on the Ethereum network work through a hosting service, such as Amazon. Of these hosted nodes, 14% currently use Hetznerwhich means that the German company currently hosts 10% of Ethereum nodes.
I know this is off topic, but if there are any Hetzner customers using Ethereum, they should read this: https://t.co/Lhlv3KAtUZ –Katie
The issue resurfaced this morning when W3bcloud co-founder Maggie Love lamented the fact in a tweet. Love suggested that Ethereum lacks proper decentralization because it relies heavily on cloud services like Amazon, which itself accounts for 50% of all hosted Ethereum nodes. The tweet also verified Hetzner’s name, and the company responded with a link to a Reddit post in which it said customers using Ethereum “should please read.”
In the post, the company said its service should definitely not be used for things related to crypto, including Ethereum. “Using our products for any mining-related application, even remotely, is not permitted,” he said.
wow @Hetzner_Online says run anyone #ethereum PoS miners or validators on their cloud infrastructure is a violation of their terms of service. hetzner is currently about 15% of hosted ethereum nodes (not necessarily beacon chain validator nodes) 😵 pic.twitter.com/9iD32PFejc