AntPool will not keep client assets on Ethereum after The Merge due to the ‘risk of censorship.’

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Last Updated on August 28, 2022 by Bitfinsider

AntPool, which is run by mining giant Bitmain, has stated that it will not keep clients’ assets on Ethereum after the blockchain transitions to proof-of-stake next month in The Merge.

The Merge will switch Ethereum from proof-of-work (PoW) to proof-of-stake (PoS), eliminating the need for miners to verify transactions.

AntPool is an Ethereum mining pool in which multiple users can plug in their computational resources and share processing power to mine rewards. Antpool deposits mining rewards into users’ accounts.

In a blog post published on Saturday, the company stated that it will be unable to keep clients’ assets on the Ethereum 2.0 network and revealed a plan to settle with them before The Merge.

Following Ethereum’s PoS upgrade, the firm will discontinue maintenance of individual client assets due to the “risk of censorship.” This is due to growing concerns that Ethereum validators may be coerced into censoring transactions related to US sanctions on Tornado Cash.

“Because ETH2.0 (The Merge) brings with it the risk of censorship among different countries, ANTPOOL will not be able to maintain the user’s ETH assets on the PoS chain for the sake of clients’ asset security,” it said.

Validators will process network transactions when Ethereum switches to proof of stake. Validators, on the other hand, are largely controlled by a few staking providers. For example, US-based providers such as Lido Finance, Coinbase, Bitcoin Suisse, Kraken, and staked.us control roughly 60% of the Ethereum network’s 416,000 validator nodes.

If these staking providers agree to comply with US sanctions, they can begin filtering Tornado Cash transactions on the base layer. It remains to be seen whether such censorship will occur as Ethereum transitions to PoS.

AntPool has requested that its customers add their own private addresses to their accounts by September 3. The accumulated PoW mining payouts will then be distributed to the private addresses by the company.

Meanwhile, AntPool has backed proof-of-work (PoW) blockchains such as Bitcoin and Ethereum Classic, which it claims rely on “decentralized PoW consensus.” Previously, AntPool not only supported Ethereum Classic, but also invested $10 million in its ecosystem.


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Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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