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Germany has the second highest concentration of ETH nodes in the world Germany has the second highest concentration of ETH nodes in the world

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Germany has the second highest concentration of ETH nodes in the world – Crypto News

Published

3 years ago

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Haru Invest

Germany operates one of the world’s largest networks of Ethereum validators, according to the 2022 German Blockchain report published by CV VC Labs,

The report which offers a structural overview of the country’s blockchain ecosystem, also indicated Germany accounts for nearly 6% of Europe’s blockchain funding.

The European country has a 22.8% share of all Ethereum nodes, while the United States leads with 45.3%. Both countries operate more than half of the entire Ethereum ecosystem, which is concerning given the need for optimal decentralization.

According to the report, geographic decentralization means so much for a network’s overall decentralization. Furthermore, the risk of censoring or controlling transactions would be too high where only a few countries dominate validator nodes.

Ethereum’s mission is to become the world’s leading computer of smart contracts, which cannot happen if validation is in the hands of a few players.

Better yet, the numbers have been increasing since last year. The percentage share of Ethereum validators in the US was 36.92% in 2021, while Germany’s share stood at 21.16%.

Despite the network’s perpetual growth, the concentration of validators still appears to be higher in particular regions.

Germany accounts for 6% of Europe’s blockchain funding

In 2022 alone, Germany’s blockchain projects raised approximately $8 billion. The total number of projects receiving funding came to 220, while the number of unicorns in the European nation totaled 34.

The report indicates the country received 2.4% of the world’s venture funding and 6% of Europe’s blockchain funding. Interestingly, venture funding value on a quarter-over-quarter basis fell by 50%, whereas deal count soared by 10%.

Equally important, the biggest share of funding went to early-stage blockchain enterprises, which made up 72% of all funding deals.

Germany blockchain report: Germany’s percentage of blockchain funding relative to the world and Europe

Most of 2022’s blockchain funding went to innovations in Infrastructure and Development, to which VCs allocated over 55% of all funding. According to the pie chart below, DeFi came second with a percentage funding of 27%, followed by NFTs at 6%.

Germany blockchain funding by sector
Germany blockchain funding by sector

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