{"id":173528,"date":"2023-10-13T14:58:00","date_gmt":"2023-10-13T09:28:00","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=173528"},"modified":"2023-10-13T14:58:00","modified_gmt":"2023-10-13T09:28:00","slug":"french-regulator-calls-out-defi-centralization-as-aws-gains-4-in-eth-node-market-share-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/french-regulator-calls-out-defi-centralization-as-aws-gains-4-in-eth-node-market-share-crypto-news\/","title":{"rendered":"French regulator calls out DeFi centralization as AWS gains 4% in ETH node market share &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<p class=\"whitespace-pre-wrap\">France\u2019s banking and insurance regulator, the Autorit\u00e9 de contr\u00f4le prudentiel et de r\u00e9solution (ACPR), has <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/acpr.banque-france.fr\/sites\/default\/files\/medias\/documents\/20231012_pr_acpr_defi_consultation_.pdf\">published<\/a> a summary of its findings from a public consultation on regulating decentralized finance (DeFi.)<\/p>\n<p class=\"whitespace-pre-wrap\">The consultation received significant engagement from global DeFi stakeholders, providing valuable insights to inform potential regulatory approaches in Europe.<\/p>\n<p class=\"whitespace-pre-wrap\">According to the ACPR, the two-month consultation enabled a deeper understanding of DeFi\u2019s risks and opportunities. While DeFi is often described as \u201cdecentralized,\u201d the regulator argues that \u201cdisintermediated\u201d may be more accurate given the concentration of infrastructure with major cloud providers, representing a potential operational vulnerability.<\/p>\n<p class=\"whitespace-pre-wrap\">The consultation also revealed broad support for certifying smart contracts, core to DeFi protocols, with suggestions around proportionality and incident reporting. Regulating intermediaries and user interfaces likewise received widespread consensus.<\/p>\n<p class=\"whitespace-pre-wrap\">Most participants advocated continuing deployment on public blockchains while strengthening resilience. The feedback will help shape the ACPR\u2019s contributions to European regulatory discussions following the Markets in Crypto-Assets (MiCA) legislation, focused on issues like:<\/p>\n<ul class=\"list-disc pl-8 space-y-2\">\n<li class=\"whitespace-normal\">Rules governing blockchain reliability critical to DeFi.<\/li>\n<li class=\"whitespace-normal\">Smart contract certification frameworks.<\/li>\n<li class=\"whitespace-normal\">Governance and conduct standards for DeFi platforms.<\/li>\n<\/ul>\n<p class=\"whitespace-pre-wrap\">According to the ACPR, regulating infrastructure, smart contracts, and businesses would allow DeFi to develop while protecting consumers. Crypto-native and incumbent financial institutions submitted feedback alongside auditors and consultants, providing diverse perspectives.<\/p>\n<p class=\"whitespace-pre-wrap\">While MiCA provides a foundation, the regulator believes further rules are needed for the unique nature of DeFi and tokenized finance. The consultation enabled the compiling of specific recommendations to expand the regulatory perimeter.<\/p>\n<h2>DeFi centralization problem continues.<\/h2>\n<p class=\"whitespace-pre-wrap\">The ACPR\u2019s sentiment that DeFi has a hardware centralization problem is shared by some within the crypto community itself, as the data shows. In July 2022, <em>CryptoSlate<\/em> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/ethereums-centralized-dapps-may-overshadow-the-decentralization-of-proof-of-stake\/\">reported<\/a> that Amazon AWS facilitated around 32% of Ethereum nodes at the time, with 47% of nodes running through major US internet and cloud providers. Analysts at the time argued the network\u2019s reliance on companies like AWS could still allow coordinated attacks across providers to disrupt operations.<\/p>\n<figure id=\"attachment_364556\" aria-describedby=\"caption-attachment-364556\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-364556\" class=\"wp-caption-text\">Distribution of ETH nodes on July 2022, per ethernodes.org<\/figcaption><\/figure>\n<p>The below charts show the distribution of Ethereum nodes by provider in July 2022 and on Oct. 12, 2023. Currently, 52.3% of nodes run on hosting services, a 5.3% increase.<\/p>\n<figure style=\"width: 711px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/07\/rfk0os4rjob91.webp\" alt=\"Distribution of ETH nodes on Oct. 12, 2023, per ethernodes.org\" width=\"711\" height=\"362\" \/><figcaption class=\"wp-caption-text\">Distribution of ETH nodes on Oct. 12, 2023, per ethernodes.org<\/figcaption><\/figure>\n<p>According to the most <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ethernodes.org\/network-types\">recent<\/a> data, Amazon has increased its share of the market by 4% over the past 15 months.<\/p>\n<p>The post <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/french-regulator-calls-out-defi-centralization-as-cloud-providers-fall-just-1-since-july-2022\/\">French regulator calls out DeFi centralization as AWS gains 4% in ETH node market share<\/a> appeared first on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\">CryptoSlate<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>France\u2019s banking and insurance regulator, the Autorit\u00e9 de contr\u00f4le prudentiel et de r\u00e9solution (ACPR), has published a summary of its findings from a public consultation on regulating decentralized finance (DeFi.) The consultation received significant engagement from global DeFi stakeholders, providing valuable insights to inform potential regulatory approaches in Europe. According to the ACPR, the two-month [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":173529,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-173528","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=173528"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173528\/revisions"}],"predecessor-version":[{"id":173530,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173528\/revisions\/173530"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/173529"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=173528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=173528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=173528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}