3 cloud providers accounting for over two-thirds of Ethereum nodes: Data

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The majority of 4,653 active Ethereum (ETH) nodes are in the hands of centralized network providers such as Amazon Web Services (AWS), which could “expose Ethereum to central points of failure,” according to crypto analysis platform Messari.

August 15th after shows that three major cloud providers account for 69% of hosted nodes on the Ethereum Mainnet, with more than 50% of that coming from Amazon Web Services (AWS), more than 15% from Hetzner and 4.1% from OVH.

Figures from Eternodes additionally shows that Oracle (4.1%), Alibaba (3.9%) and Google (3.5%) also provide web hosting services on Ethereum.

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Distribution of Ethereum nodes by web service providers. Source: Ethernodes

As the distribution of cloud service providers becomes more decentralized among the bottom third of providers, to mess pressed the concern in a December 2020 report that the high-cost nature of node infrastructure may leave Ethereum vulnerable:

“High costs to maintain infrastructure make it more likely that nodes would run infrastructure with cloud computing providers (ie AWS) – making Ethereum more exposed to central points of failure.”

Node distribution problems experienced by Solana (SOL) are very similar, with Hetzner accounting for 42% of hosted nodes on the Solana network, followed by OVH (26%) and AWS (3%).

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In addition, Ethernode data also shows that nodes are most geographically concentrated in the United States (46.4%) and Germany (13.4%), accounting for almost 60% of distributed Ethereum nodes worldwide. As such, government intervention by one of these two countries could significantly impact Ethereum’s decentralization at the node level.