Despite the constant nostalgia for Proof of Work (PoW) within the Ethereum community, Ethereum co-founder Vitalik Buterin has firmly ended the debate, asserting that PoW is not immune to centralization.
As Ethereum transitions to Proof of Stake (PoS), Buterin argues that the temporary nature of PoW leaves the centralization problem largely unsolved. Buterin supports his position by revealing a harsh reality: Under PoW, only a few mining pools have too much control over Ethereum’s network.
Shockingly, 76% of ETH mining power is concentrated in just five major mining pools, with Spark Pool and Ethermine being the main mining pools dominating the industry, together controlling more than half of altcoin production. The SEC's allegations of linking Ethereum's consensus mechanism with security issues have delayed the expected Ethereum ETF, casting a shadow on the regulatory environment for cryptocurrencies.
However, cryptocurrencies running on PoW, such as Bitcoin, have successfully passed regulatory hurdles and received approval for ETFs, which has also added fuel to the debate. As Ethereum continues to use PoS consensus, Buterin’s firm stance is a clear response to those who miss the mining era.
